Revlon segment net sales in the second quarter of 2018 fell 10.8% to $258.3 million, driven by lower net sales of Revlon color cosmetics and Revlon ColorSilk hair color, primarily in the international markets due to the Oxford, NC service level disruptions, in addition to consumption declines in North America.
Revlon segment profit decreased 32.3% in the second quarter of 2018 compared to the prior-year period, primarily due to the lower net sales.
However, Elizabeth Arden segment net sales in the second quarter of 2018 rose 4.9% to $106.1 million, primarily driven by higher net sales of Elizabeth Arden skin care products, including Ceramide and Prevage, principally in international markets.
Portfolio segment net sales increased 2.9% to $147.6 million in the second quarter, fueled by higher net sales of Almay color cosmetics following the relaunch of the brand and lower sales incentives, as well as higher net sales of CND nail products as a result of Shellac nail polish innovation.
Fragrance sales fell 15.1% to $94.8 million. As a result of cost reductions associated with insourcing production capabilities, fragrance segment profit increased 38.8% in the second quarter, partially offset by the lower net sales.
In North America, Revlon sales fell 7.5% to $148.9 million, primarily as a result of lower net sales of Revlon color cosmetics due to consumption declines within the US mass retail channel and lower net sales of Revlon ColorSilk hair color.
In International, Revlon sales slipped 14.9% to $109.4 million, due to lower net sales of Revlon color cosmetics, primarily resulting from the Oxford, N.C. service level disruptions.
“Despite SAP service level disruptions at the Oxford, NC plant and other broader market impacts, we are starting to see the positive effects of our strategic investments on our growth priorities,” said Debra Perelman, president and CEO of Revlon. “Our strategy continues to focus on strengthening our brands and enhancing the avenues through which we communicate and connect with our consumers. We are focused on ensuring broad availability of our products where the consumer shops in both brick and mortar and online. We are seeing strong growth in e-commerce and innovation, including a very positive response to the launch of Flesh, our new in-house incubated brand. We continue to build strategic capabilities and partnerships to position the company to win over the long term.”