Revlon Inc. is back on the sales growth track in 2012, with U.S. sales advancing 4.6 percent and overall revenues up 1.7 percent in the second quarter.
“We’re focused on driving profitable growth, and that’s a combination of organic growth and acquisitions,” Alan Ennis, Revlon’s president and chief executive officer, told WWD following the company’s earnings conference call on Tuesday. “We’ve done some small deals that fit into Revlon’s sweet spot.” Ennis said the company will continue to look for opportunities to expand its portfolio and distribution — potentially beyond the mass market into the specialty channel.
Ennis said nail care tends to be a higher margin business for Revlon, but added that the company also invests heavily in new innovation and packaging.
Both Revlon and Almay’s sales grew in the quarter, but the company continues to keep close watch over the Almay brand. “We are dissatisfied with the market performance of the brand,” said Chris Elshaw, Revlon’s executive vice president and chief operating officer. “We are very focused on improving all aspects of Almay’s marketing mix....We really want to improve our market share performance.” He said the company has been making changes to Almay’s advertising and promotional plans, in-store merchandising and innovation pipeline. He pointed to the launch of the Almay Wake-up makeup franchise as an example.
Ennis said, “We can bring great innovation to the marketplace, and we fully expect to be successful with the Almay brand.”
During the second quarter, net income was $11.1 million, or 21 cents a diluted share, compared to net income of $6.5 million, or 12 cents a diluted share in the same period last year.
Net income in the second quarter of 2012 included a charge of $6.7 million, before and after tax, related to estimated costs of resolving litigation related to the company’s 2009 exchange offer. Net income in the second quarter of 2011 included $11.3 million of charges, $6.9 million after tax, related to the 2011 refinancing of Revlon’s bank credit facilities.
For the three months ended June 30, sales were $357.1 million, compared with $351.2 million in the year-ago period. Excluding unfavorable foreign currency fluctuations, net sales increased 4.2 percent, driven by higher sales of Revlon and Almay cosmetics and Revlon ColorSilk hair care.
The overall net sales gain marks a bounceback since the company’s top line slid 0.8 percent in the first quarter.
For the first half, net income gained 16 percent to $19.6 million, or 37 cents a diluted share, compared to $16.9 million, or 32 cents a share. Sales during the six month period ticked up 0.5 percent to $687.8 million, or 2.4 percent excluding unfavorable foreign currency exchange fluctuations.
By region, quarterly net sales rose in three of Revlon’s five markets. Sales in the U.S., net sales gained 4.6 percent to $203.9 million, in Latin American sales rose 22.8 percent to $32.3 million, and in Canada sales increased 6.2 percent to $20.7 million. The company’s sales in the Asia-Pacific region declined 4.6 percent to $55.8 million, and in Europe, the Middle East and Africa sales decreased 14.6 percent to $44.4 million.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)