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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast