NEW YORK — Revlon, Inc. is lowering its 2006 growth outlook, citing “less robust growth from Vital Radiance and Almay due to stepped up competitive activity, as well as less effectiveness from certain of [its] revenue driving actions,” according to a statement issued this morning. Revlon now expects “adjusted EBITDA to be at or below 2005 levels, with a significant impact on the second quarter of this year.”
As a result, Revlon said it plans to defer its $75 million equity offering to later this year or early 2007. Going forward, Revlon will work to reduce cost of goods, returns and costs in other areas of operations. Revlon also no longer expects a 12 percent operating margin by the end of 2008, the release added.
Revlon president and chief executive officer, Jack Stahl, stated, “Our initiatives are delivering significant incremental revenue growth in 2006, although they are requiring significant levels of investment to build consumer awareness and trial — particularly of Vital Radiance —?due in part to the heightened competitive environment. We believe that these investments, along with our other actions to build the value of our brands, strengthen our retail relationships and reduce costs, will benefit the value of our Company over time.”
For complete coverage, see Monday’s issue of WWD.