Revlon Inc. is expanding its restructuring efforts, again.
Revlon said it would work to boost organic growth for its brands in order to deliver a mid-single compound average annual growth rate through 2023, reduce annual costs by between $75 million and $95 million through 2023, and enhance capabilities and employee skill sets in order to “promote agility and deliver transformational change.”
The new plan — one of several restructuring efforts the company has unveiled in recent years — is meant to focus on the Revlon and Elizabeth Arden brands in key markets and channels, including mass and prestige in the U.S., Europe, the Middle East and Africa, and China, and the firm’s global e-commerce business.
Debbie Perelman, Revlon’s chief executive officer, called the Global Growth Accelerator program a “holistic transformation program.”
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“We continue to anticipate a recovery in demand for beauty products including color cosmetics as the pandemic restrictions ease globally and believe that with the focus of RGGA, we are well positioned to capture the opportunities ahead for Revlon,” Perelman said.
Perelman noted that Revlon’s business has benefited from “exhaustive restructuring strategies we first implemented in 2018” and that she was “pleased” with improvement in the business as the company continues to recover from impacts of the COVID-19 pandemic.
Financial results for the quarter ended March 31 were revealed at the same time as the latest restructuring effort.
For the quarter, Revlon net sales dipped 1.8 percent to $445 million, and the company’s net loss narrowed to $96 million, versus about $214 million in the prior-year period. Revlon has also increased e-commerce to 13 percent of total sales, the company said.
Jefferies analyst Steph Wissink called Revlon’s results “slow and steady progress” in a research note, and noted that without impacts from the pandemic, the company’s sales would have actually risen nearly 8 percent.
Elizabeth Arden and the fragrances segment fared well in the quarter, while cosmetics continued to struggle.
“As markets around the world continue to reopen and COVID-19 restrictions loosen, we are optimistic around the rebound of the mass channel, particularly the color cosmetics category,” Perelman said.
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