Sales: $2.3 billion.
Key Personnel: Fabian T. Garcia, president & chief executive officer; Pamela Alabaster, senior vice president, corporate communications & corporate social responsibility; Alan Blake, chief supply chain officer; Corrado Brondi, president, CBBeauty; David Carvalho, senior vice president, business integration officer; John Collier, president North America; Mitra Hormozi, executive vice president and general counsel; Serge Jureidini, president Elizabeth Arden & Fragrances; Eric Lauzat, president EMEA & Asia; Dimitra Manis, chief human resources officer; Sennen Pamich, president, portfolio brands; Chris Peterson, chief operating officer, operations & chief financial officer; Gianni Pieraccioni, chief operating officer, markets; Pierre Pirard, global R&D, Arden operations; Anne Talley, president, Revlon; Linda Wells, chief creative officer.
Major Products: Consumer—Revlon, Almay, SinfulColors and Pure Ice color cosmetics, Revlon Colorsilk hair color, Revlon beauty tools, Charlie fragrances, Mitchum antiperspirant and deodorants, Ultima II and Gatineau skin care; Professional—Intercosmo, Orofluid, American Crew and UniqOne hair care. CND nail polishes; Elizabeth Arden—Elizabeth Arden, Red Door, Halston, Elizabeth Taylor, Brittney Spears, Visible Difference, Prevage, Elizabeth Arden Ceramide.
New Products: Revlon—Ultra HD gel Lipcolor, Ultra HD Matte Lipcolor, Kiss Balm, Super Lustrous Lipstick. Mega Multiplier Mascara, Colorstay Crème Eyeshadow, Colorstay 2 in 1 Angled Kajal, Colorstay Brow Crayon, Colorstay Brow Pencil. Youth FX Fill + Blur Foundation, Youth FX Fill + Blur Primer for Face/Neck, Youth FX Fill + Blur Primer for Forehead, Youth FX Fill + Blur Concealer, Insta-Blush, Instafix Highlighting Stick, Revlon Colorstay Gel Envy Longwear Nail Enamel, Professional Be Fabulous and Revlonissimo Colorsmetique; Revlon Hair—Colorsilk Buttercream, Colorsilk Moisture Rich Color, Colorsilk Shampoo & Conditioner; Almay Intense I-Color Smoky Collection, Shadow Softies; CND Sunset Bash Collection.
Comments: Revlon brass has a lot to digest these days, following last year’s acquisition of Elizabeth Arden, which added more than $440 million in sales, following the September, 2016 acquisition. To accomplish the job, in January, Revlon unveiled a new organization structure designed to enable the company to meet its long-term growth aspirations and more effectively compete in the dynamic and rapidly growing, global beauty industry. The company’s new brand-centric structure is built around four global brand teams, Revlon, Elizabeth Arden, Fragrances and Portfolio Brands.
Furthermore, a new customer-facing regional structure will optimize global sales and brand presence behind five regions in North America; Europe, Middle East & Africa; Asia; Latin America (including Mexico); and Pacific, which includes Australia and New Zealand. To support the new brand-centric and regional structures, the enabling functions, including finance, human resources, supply chain, research & development, legal, and communications & corporate social responsibility, will also reorganize their departments.
“This new brand-centric structure enables us to leverage the strength of our iconic brands, better focus on and serve beauty consumers, and quickly adapt to their changing behaviors and preferences,” said Fabian Garcia, president and CEO of Revlon. “Aligned with our strategy, the new brand-centric structure better positions us to grow and win across categories, channels and geographies by delivering consistent, seamless and exceptional brand experiences, wherever and however our consumers shop for beauty,” he added.
The new organization design enables the company to continue to build on its strategy for growth, streamlines and simplifies the ways of working and assembles an experienced, passionate and talented leadership team that will help realize the combined organization’s vision and growth ambitions.
With the benefit of a full year of Elizabeth Arden results, Revlon expects sales to reach $3 billion this year. But that’s still six months away.
Taking a look at 2016 results, due to Forex, consumer segment sales fell 1.8% to just under $1.39 billion. The company said the addition of Cutex in late 2015 provided a lift as did sales of Mitchum antiperspirant/deodorant. Almay sales fell and Revlon sales were flat.
Professional segment sales rose 1.1% to more than $476 million due to higher sales of American Crew men’s grooming products as well as the launch of Revlon Professional Be Fabulous and Revlonissimo Colorsmetique. Gains were partially offset by lower sales of CND nail products.
Within the consumer segment, North American sales fell 4.2%, which Revlon blamed on softening trade conditions in core categories, such as color cosmetics and hair color. In contrast, in international markets higher sales of Revlon color cosmetics and Revlon ColorSilk hair color, along with higher sales of Cutex, all contributed to an 8.2% gain. Top performing markets included Argentina, the UK and Mexico.
In the professional category, North American sales increased 1.5% to about $205 million, thanks to the popularity of American Crew and Cream of Nature hair care products, partially offset by a decline in CND nail product sales. International sales increased less than 1%.
For the first quarter of 2017, sales surged 35.3% to nearly $595 million, due to the Elizabeth Arden and Cutex purchases. On a negative note, pro forma sales fell 5.8%, but the company has updated its corporate strategy to leverage the power of the expanded brand portfolio and geographic footprint. The strategy is based on three pillars:
- Strengthen the portfolio of brands;
- Strategically expand consumers’ access to the brands; and
- Develop a cost structure that fuels investment in the brands.