In its first earnings report as a combined business, Revlon Inc., which now includes Elizabeth Arden, posted sales gains.
The newly combined company reported a net loss of $4.7 million for the quarter, but excluding non-operating and unusual items (which includes $33.5 million in acquisition and integration costs), net income was $15.8 million for the quarter, Revlon said. Revlon posted a 28.3 percent increase in net sales with $604.8 million, with earnings before interest, taxes, depreciation and amortization of $113.4 million, a 34.8 percent increase.
In terms of net sales, $342.8 million came from Revlon’s consumer segment, $118.8 million were brought in by the professional division, $135.2 million came from Elizabeth Arden, and $8 million came from other sales (the other segment contains the CBB fragrance business, acquired in 2015). Profit wise, the consumer division posted $81 million, while the professional unit had $23.7 million, Arden had $32.5 million and other posted a $100,000 loss.
In the consumer segment, where Revlon just named Ciara as its latest ambassador, higher sales of Revlon beauty tools and color cosmetics were offset by lower sales of Sinful Colors color cosmetics. In the professional segment, sales were driven by the launch of Revlon Professional Be Fabulous, as well as American Crew’s men’s grooming products, offset by lower sales of CND nail products. Sales at the Arden segment were driven by color cosmetics and higher sales of Juicy Couture, John Varvatos, Britney Spears and Curve fragrances. The Arden segment’s profit for the quarter grew 46.7 percent in part because of higher sales, lower cost of goods.
“Reporting as a combined organization for the first time since completing the Elizabeth Arden acquisition, we are pleased to share that the total company has continued its growth trajectory through the third quarter, with reported net sales up 30 percent XFX or up 2.5 percent on a pro forma XFX basis,” said Fabian Garcia, Revlon chief executive officer. “All four of our reporting segments, consumer, professional, Elizabeth Arden and our other segment, delivered XFX net sales growth in the quarter, with Elizabeth Arden and the professional business realizing increases in both of the North America and International regions.”
“During the third quarter we completed our acquisition of Elizabeth Arden and began to develop our new organizational structure that is designed to enable us to drive future global growth,” Garcia continued. “We are making good progress on integrating the Revlon and Elizabeth Arden organizations and we have confirmed our ability to deliver at least the $140 million of multi-year synergies and cost reduction estimates related to the transaction.”