New York — Revlon is beginning to reap the rewards of a more robust product pipeline. The New York-based beauty firm delivered fourth quarter net income that surged 39 percent to $64.3 million, or 17 cents a diluted share, compared to $46.2 million, or 12 cents a share, in the year-ago period.
You May Also Like
“Our strategy to re-energize important franchises, while simultaneously developing new products is working,” said Revlon president and chief executive officer Jack Stahl. Revlon’s sales for the fourth quarter ended Dec. 31 increased 16 percent to $437.8 million from $378.3 million, driven by North American sales. Fueled by Revlon’s newly introduced Vital Radiance and restaged Almay brand, North American sales increased 22 percent to $306 million from $251 million in the year-ago period.
Meanwhile, international sales rose 4 percent in the quarter to $132 million from $127 million. Excluding the unfavorable impact of currency exchange rates, international sales increased 7 percent. For the year-end period, Revlon’s loss narrowed to $83.7 million, or 23 cents, from a loss of $142.5 million, or 47 cents a share, in 2004, while sales inched up almost 3 percent to $1.3 billion, aided by Vital Radiance and Almay. Revlon said partially offsetting theses benefits were continued softness of color cosmetics collection due for a revamp and an $11 million reduction in licensing revenue.
North American sales came in flat at $857 million, compared with sales of $856 million in the previous year. Despite swallowing $44 million in product returns associated with its 2006 launches, the new initiatives resulted in $33 million in net sales. For the year, international sales rose 8 percent to $475 million. The positive effect of currency exchange rates added two points of the growth.