New York, NY
Sales: $1.4 billion
Sales:$1.4 billion. Net loss: $16.1 million.
Key Personnel:Ronald O. Perelman, chairman; David L. Kennedy, president and chief executive officer; Alan T. Ennis, executive vice president and chief financial officer; Chris Elshaw, executive vice president and general manager, U.S.; Carl Kooyoomjian, executive vice president, technical affairs and worldwide operations; Robert K. Kretzman, executive vice president, human resources, chief legal officer and general counsel; Karl Obrecht, executive vice president, North American sales; Manuel Blanco, senior vice president and managing director, Latin America; Arthur Franson, senior vice president, worldwide manufacturing; Graeme Howard, senior vice president, managing director, Asia Pacific; Edward A. Mammone, senior vice president, corporate controller and chief accounting officer; Abbe F. Goldstein, senior vice president, investor relations and corporate communications; Mark M. Sexton, senior vice president and general tax counsel; Simon Worraker, senior vice president and managing director, Europe.
Chief Scientific Officer:Neil Scancarella, executive vice president and chief science officer.
Major Products:Cosmetics, women’s hair color, fragrances, skin care, antiperspirants/deodorants and personal care products sold under brand names such as Revlon, ColorStay, Revlon Super Lustrous, Revlon Age Defying, Almay, Almay Smart Shade, Revlon Colorsilk, Charlie, Jean Nate, Ultima II, Gatineau, Mitchum, Bozzano.
New Products:ColorStay Mineral Collection; Custom Creations Foundation; Limited Edition Mix & Mingle Lip Palette, Crème de la Chrome Liquid Lipcolor, A Floral Affair Sheer Powder Blush, Make a Sheen Lustrious Shadow, Soft on the Eyes Sheer Loose Shadow and Marble-Ous Match Liner/Shadow Duo; Mitchum Smart Solid; Almay TLC Truly Lasting Color makeup; Almay Intense i-Color Mascara and Eye Shadow.
Comments:Net sales for Revlon increased about 5% to $1.4 billion. Net loss was significantly lower than last year at $16.1 million, compared to a net loss of $251.3 million in 2006. U.S. sales rose 5% to $804.2 million, driven by demand for women’s hair color and Almay color cosmetics. However, the gains were offset by declines in Revlon color cosmetics and the impact of Vital Radiance, which was discontinued in September, 2006. Revlon’s share of the U.S. color cosmetics category fell 230 basis points last year to 19.2%. Revlon’s share dropped from 14% to 13%, Almay’s share dipped .2% and Vital Radiance dropped from 1.2% to .2%. However, Revlon’s share of the women’s hair color category rose 200 basis points to 11.2%.
International sales increased 5% to nearly $596 million. Sales gains in the Asia Pacific region were partially offset by lower sales in Europe and Canada.
This year, the company continues to focus on:
• Building and leveraging its strong brands;
• Improving the execution of its strategies and plans, and providing for continued improvement in its organizational capability through enabling and developing its employees;
• Continuing to strengthen its international business;
• Improving its operating profit margins and cash flow; and
• Improving its capital structure.
In 2007, Revlon also signed brand ambassadors Jessica Alba and most recently, Elle Macpherson, who represent the brand globally along with Beau Garrett and Halle Berry in global advertising campaigns and company-sponsored philanthropic activities. World-renowned makeup artist Gucci Westman was also tapped as the Revlon brand’s new global artistic director. In this new role, Ms. Westman will provide Revlon with expertise on new products and shade development. The company plans to introduce an extensive lineup on new products for both Revlon and Almay throughout 2008.
Despite the new faces, Revlon’s 2008 first quarter net sales dropped 2.5% to $320.4 million. Net sales in the first quarter of 2007 did benefit from initial shipments of beauty care products, including the launches of Revlon Colorist hair color and Mitchum Smart Solid antiperspirant and deodorant. Net loss in the first quarter of 2008 was $2.5 million, compared with a net loss of $35.2 million for the same quarter in 2007, according to the company.