NEW YORK — Shares of Revlon Inc. fell 6.7 percent to $19.16 Thursday after the beauty company swung to a first-quarter loss, due in part to hefty refinancing charges.
For the period ended March 31, the firm reported a loss of $6.9 million, or 13 cents a diluted share, compared with a year-ago profit of $8.5 million, or 16 cents a share. The company attributed the bulk of the quarterly loss to a $16.9 million after-tax charge related to the 2013 refinancing of its senior notes and the amendment of its bank term loan.
First-quarter sales edged up 0.4 percent to $331.9 million from sales of $330.7 million in the year-ago period.
Wall Street anticipated earnings per share of 26 cents on sales of $351 million.
In the U.S., which makes up roughly half the company’s business, sales rose 4 percent to $192.1 million, driven by higher demand for Revlon and SinfulColors color cosmetics and Pure Ice.
Sales in the Asia-Pacific region declined 4.5 percent to $53.6 million, due in part to the impact of unfavorable currency fluctuations and lagging demand for Revlon color cosmetics in China. Currency volatility also affected sales in the Europe, Middle East and Africa region, which logged an 11.1 percent decline, or sales of $40.7 million.
Higher sales of Revlon color cosmetics boosted the firm’s Latin American and Canadian businesses to $45.5 million, representing a 3.2 percent increase.
“The consumer is out there still buying product,” president and chief executive officer Alan Ennis told WWD. “The opportunity for us is to continue to bring innovation to the marketplace.”
According to the ceo, products such as nail art and lip products will continue to drive business in the U.S. At the same time, some of the trends from the Asia market, such as beauty balms and color control creams, are catching on in America as well.
“What we’ve seen over the past couple of years is the trends in Asia are hitting the West market,” noted executive vice president and chief operating officer Chris Elshaw, who added that Western trends are becoming increasingly popular in Asia, as well.
“The lines are eroding,” Elshaw said.
Next up for Revlon, which just entered the Russian market at the end of last year, will be the introduction of a line of liquid color lip balms, CC creams and eye makeup remover.
Revlon, which improved its capital structure by refinancing its senior notes, amending its bank term loan, reducing interest rates and extending maturities on its debt over the first quarter, has its sights set on more acquisitions in the future.
“We’re always looking for new opportunities,” the ceo offered.
In a separate filing with the Securities and Exchange Commission Thursday, Revlon disclosed Ennis’ compensation. In 2012, the ceo’s total compensation rose 5.2 percent to $3.23 million from $3.1 million in 2011. His salary increased 1.2 percent to $921,235, as his nonequity incentive plan compensation expanded 7.7 percent to $2.2 million. Ennis’ other compensation, which included car allowance, 401(k) contributions and life insurance premiums, remained relatively flat at $65,989.
Because of vesting schedules and fluctuating stock values, stock and option awards aren’t necessarily realized by the named executives but, in accordance with SEC requirements, are reported to the SEC at “grant date fair value.”
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)