Revlon reported only a slight dip in net sales for the most recent quarter, with a narrowed loss.
The business posted $553.2 million in net sales for the quarter ended March 31, down 1.3 percent. Net loss was $75.1 million, improved from $90.3 million in the prior-year period. Diluted loss per common share was $1.42. Revlon’s e-commerce sales were up 42 percent in the quarter, and now make up 7 percent of total net sales.
“We are very pleased with the continued momentum in our business during the first quarter of 2019 driven by strong growth in Revlon and Elizabeth Arden,” said chief executive officer Debbie Perelman in a statement. “We also remain encouraged by the positive consumer response to our first half 2019 new product introductions. Our strategic focus areas of e-commerce, Elizabeth Arden skin care, China and travel retail continued to perform exceedingly well, and as a result of improved operational performance, we achieved our third consecutive quarter of year-over-year adjusted [earnings before interest, taxes, depreciation and amortization] growth.”
The Revlon segment posted a 7.9 percent increase in sales, to $247.3 million, in the quarter. On the company’s earnings call Thursday, Perelman said she was particularly encouraged by the brand’s growth is color cosmetics, which was up double digits. Revlon’s store resets have been completed in North America, she said, and the brand grew in Australia and several European markets. The brand’s ColorStay Brow Creator, Photo-Ready Rose Glow Primer and Photo Ready Candid collection with Ashley Graham did well, Perelman said.
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Elizabeth Arden posted a 5.4 percent increase, to $111.4 million.
The portfolio segment, which includes brands like American Crew and Mitchum, posted a 12.9 percent decrease in net sales, to $117.2 million. American Crew’s North America sales were up 22 percent, Revlon said, but CND’s business was down “due to the underperformance of last year’s shellac launch,” Perelman said. Almay is also down, but the company said it was because of new product launches in the prior-year season.
Fragrances also declined, posting $77.3 million in net sales, a drop of 15.4 percent. Revlon blamed that on weakness in the U.S. mass fragrance business, plus retailer’s dropping brands from their lineups. The Juicy Couture brand did well in the quarter, Revlon said.
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