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Revlon Sales Dipped 20 Percent During Coronavirus Pandemic

The company's e-commerce operations have become a bright spot, and now make up 20 percent of the business.

Revlon Inc. saw a more than 20 percent decline for 2020, as the company was negatively impacted by the coronavirus pandemic.

For the full year, Revlon’s net sales declined 21.3 percent to $1.9 billion, with a net loss of $619 million.

The Revlon brand’s sales fell 28.2 percent from the prior year, to $688.4 million. Arden’s sales declined 10.9 percent, to $463.5 million; portfolio segment sales dropped 17.7 percent to $401.3 million, and fragrance sales fell 22.5 percent, to $351.1 million.

“We are seeing signs of broader positive momentum in the business, and with several major 2020 challenges behind us, we believe we are well positioned to capture the reemerging opportunities in the beauty industry,” said Revlon president and chief executive officer Debbie Perelman in a statement. Revlon plans to focus on accelerating brands, China and e-commerce going forward, Perelman said.

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On the company’s earnings call Thursday, Perelman told analysts that Revlon held some 2020 product launches back due to the pandemic, but that those items would come to market in 2021.

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Revlon posted a 10.4 percent decrease in net sales for the quarter ended Dec. 31, to $626.6 million. The net loss was $233.8 million.

All segments at the company except for Elizabeth Arden saw sales declines.

Arden’s sales were $181.1 million for the quarter, a year-over-year increase of 7.8 percent.

Revlon brand’s net sales declined 15.3 percent, to $205.6 million; the portfolio segment declined 22.8 percent from the prior-year period to $103.2 million, and the fragrances division declined 11.8 percent to $136.7 million. Arden, Revlon and the fragrances division increased their profits in the quarter, while the portfolio division’s profits declined 32.5 percent to $13.5 million.

E-commerce was a bright spot for the company. For the quarter, online sales increased 39 percent, and now make up 20 percent of all sales.

The company attributed sales declines in the Revlon segment to the effects of the coronavirus pandemic, which caused lower sales for Revlon makeup and ColorSilk hair care. Revlon tools posted higher sales, the company said.

At Arden, sales were driven by Ceramide, Prevage and the Green and White Tea fragrances, as well as online, which grew more than 70 percent, and China, which increased 54 percent in the quarter. Sales of the Eight Hour franchise and makeup declined.

Revlon’s portfolio segment struggled due to dips in Almay’s makeup sales, American Crew’s men’s grooming products and the CND nail line, the company said.

Revlon said dips in the fragrances segment were because of COVID-19, especially in the U.S. mass retail channel and licensed fragrances.

The company had about $250 million in liquidity at the end of the quarter, from loans and from a license agreement with Helen of Troy.

The company also said it had refinanced two loans that had been set to mature in 2021: an amendment to a $450 million asset-based revolving credit agreement with Citibank NA, and a $75 million asset-based term loan facility with Blue Torch Finance LLC that repaid a loan scheduled to mature in July. The amendment to the larger facility extended the maturity of that loan to 2023.

“There are no imminent maturities on the horizon,” Perelman said.

Those refinancing agreements come after the company completed an exchange offer that allowed it to avoid larger-scale restructuring in November.

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