The white-hot nail-care category added a glossy finish to Revlon Inc.’s fourth quarter, in which sales rose 8.8 percent.
The mass-market beauty firm’s net income for the quarter ended Dec. 31 was $46.5 million, or 89 cents a diluted share, compared with $36.4 million, or 70 cents a share, in the year-earlier period. The company’s net sales in the quarter were $391.3 million, compared to $359.8 million in the year-ago period, driven in part by Revlon cosmetics, SinfulColors nail polishes and the inclusion of the Pure Ice nail color brand, which the company acquired in July. Excluding the unfavorable impact of foreign currency translation, sales rose 9.3 percent.
Revlon president and chief executive officer Alan Ennis told analysts during the company’s earnings call on Tuesday that both SinfulColors, which the company acquired in 2011, and Pure Ice performed during the year. “We will continue to focus on opportunities to grow our existing brands as well as to acquire brands that complement our core business,” said Ennis.
When asked what categories pique Revlon’s interest when it comes to potential acquisitions, Ennis told WWD that Revlon has a disciplined approach focused on the company’s core competencies, such as color cosmetics, and on growing the business profitably.
“The nail trend continued to fire on all cylinders during the holiday,” said Chris Elshaw, Revlon’s executive vice president and chief operating officer. “We see that [trend] continuing for some time, which will benefit us.”
In the U.S., net sales in the quarter ended Dec. 31 increased 14.1 percent to $219.2 million, despite lower net sales of Almay. The Almay brand, fronted by actress Kate Hudson, has struggled to grow share for a number of years and, according to Revlon, its net sales decreased year over year.
As for how the company plans to fix Almay, Elshaw said, “What’s required is some refinements,” across advertising and in-store merchandising, as well as new packaging and products. He said the company will begin to introduce improvements on those fronts this year. “It will be an evolution over the long term,” said Elshaw of building the Almay business. The company also is increasing media and promotional support for Almay.
As for the remaining regions, during the quarter net sales in Asia-Pacific gained 3.6 percent to $66.1 million; sales in Latin America and Canada rose 14.6 percent to $55.6 million, while sales in Europe, Middle East and Africa declined 9.8 percent to $50.4 million.
For the year, Revlon’s net income declined 4.3 percent to $51.1 million, or 98 cents a diluted share, compared to $53.4 million, or $1.02 a share, in the prior year. The results included $24.1 million in restructuring charges and a net charge of $8.9 million related to a previously disclosed shareholder litigation settlement. Sales for the year increased 3.2 percent to $1.43 billion, up from $1.38 billion.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast