Revlon Inc.’s year-end results came a little late but as expected.
The beauty company, which was planning to weigh in with its fiscal update last week, said its results for 2017 came in on par with what it pre-announced in late January, when Fabian Garcia stepped down as president and chief executive officer.
Garcia, who spent less than two years in the post, oversaw Revlon’s integration of Elizabeth Arden, which it bought for $870 million in 2016.
That deal gave it a broader base amid declines in the mass retail channel, but has also produced integration costs that weighed on the bottom line.
The search is on for a new ceo, but Paul Meister, a board member who’s overseeing day-to-day operations on an interim basis, wouldn’t tell curious financial analysts on a conference call when a permanent replacement would be revealed.
“We’re in the process of a detailed evaluation of those with what I’d call the most engaging skill-set for that role, but I would not expect a massive strategy change [with that person],” Meister said. “When we’ve got our thoughts together we’ll let people know.”
In the fourth quarter, Revlon’s losses widened to $76.9 million from $36.5 million. Sales slipped 1.8 percent to $786.6 million. Sales in the company’s consumer segment fell 3.2 percent to $355.7 million as Elizabeth Arden’s sales rose 2.3 percent to $313.2 million and the professional segment’s sales decreased 6.3 percent to $111.8 million.
Last year, Revlon’s net losses widened to $183.2 million from $21.9 million in 2016. Sales rose 15.4 percent to $2.69 billion from $2.33 billion.
The firm said it “continued to accelerate the realization of synergies and cost reductions on the restructuring and integration of Elizabeth Arden, delivering $69 million of synergies and cost reductions for the year.”
But during the call, Meister admitted that an initial expectation of about $190 million in cost-savings related to the acquisition has gone down, although he refused a number of requests to specify by how much.
“We’re not putting a specific number around it.” Meister also refused to offer any financial guidance, despite multiple requests.
Revlon also logged $22 million in restructuring and other charges in just the fourth quarter “in connection with implementing actions under the Elizabeth Arden Integration Program, as the company continues to execute on the process to consolidate and streamline the combined organization.” Through the end of the year, the restructuring charges totaled $72 million.
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