NEW YORK — Shares of Revlon Inc. fell 6.7 percent to $19.16 Thursday after the beauty company swung to a first-quarter loss, due in part to hefty refinancing charges.
For the period ended March 31, the firm reported a loss of $6.9 million, or 13 cents a diluted share, compared with a year-ago profit of $8.5 million, or 16 cents a share. The company attributed the bulk of the quarterly loss to a $16.9 million after-tax charge related to the 2013 refinancing of its senior notes and the amendment of its bank term loan.
First-quarter sales edged up 0.4 percent to $331.9 million from sales of $330.7 million in the year-ago period.
Wall Street anticipated earnings per share of 26 cents on sales of $351 million.
In the U.S., which makes up roughly half the company’s business, sales rose 4 percent to $192.1 million, driven by higher demand for Revlon and SinfulColors color cosmetics and Pure Ice.
Sales in the Asia-Pacific region declined 4.5 percent to $53.6 million, due in part to the impact of unfavorable currency fluctuations and lagging demand for Revlon color cosmetics in China. Currency volatility also affected sales in the Europe, Middle East and Africa region, which logged an 11.1 percent decline, or sales of $40.7 million.
Higher sales of Revlon color cosmetics boosted the firm’s Latin American and Canadian businesses to $45.5 million, representing a 3.2 percent increase.
“The consumer is out there still buying product,” president and chief executive officer Alan Ennis told WWD. “The opportunity for us is to continue to bring innovation to the marketplace.”
According to the ceo, products such as nail art and lip products will continue to drive business in the U.S. At the same time, some of the trends from the Asia market, such as beauty balms and color control creams, are catching on in America as well.
“What we’ve seen over the past couple of years is the trends in Asia are hitting the West market,” noted executive vice president and chief operating officer Chris Elshaw, who added that Western trends are becoming increasingly popular in Asia, as well.
“The lines are eroding,” Elshaw said.
Next up for Revlon, which just entered the Russian market at the end of last year, will be the introduction of a line of liquid color lip balms, CC creams and eye makeup remover.
Revlon, which improved its capital structure by refinancing its senior notes, amending its bank term loan, reducing interest rates and extending maturities on its debt over the first quarter, has its sights set on more acquisitions in the future.
“We’re always looking for new opportunities,” the ceo offered.
In a separate filing with the Securities and Exchange Commission Thursday, Revlon disclosed Ennis’ compensation. In 2012, the ceo’s total compensation rose 5.2 percent to $3.23 million from $3.1 million in 2011. His salary increased 1.2 percent to $921,235, as his nonequity incentive plan compensation expanded 7.7 percent to $2.2 million. Ennis’ other compensation, which included car allowance, 401(k) contributions and life insurance premiums, remained relatively flat at $65,989.
Because of vesting schedules and fluctuating stock values, stock and option awards aren’t necessarily realized by the named executives but, in accordance with SEC requirements, are reported to the SEC at “grant date fair value.”
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion