With new financing in hand, a big sales gain online and cost cuts under way, Debbie Perelman, Revlon Inc.’s president and chief executive officer, said the beauty company is navigating the disruptions of the coronavirus.
Still, the impact on the company’s business was stark, even with the COVID-19 shutdown in the U.S. only hitting the last few weeks of its first quarter, which ended March 31.
Net losses widened to $213.9 million from $75.1 million. Factoring out $5.7 million in COVID-19 related charges, $110.9 million in impairment charges and other items, adjusted losses widened only slightly to $64.1 million from $63.6 million.
Net sales fell 18.1 percent to $453 million, with an estimated COVID-19 hit of $54 million.
“Although our business was significantly impacted during the first quarter of 2020 by the ongoing global COVID-19 pandemic, we have taken aggressive steps to mitigate these effects and feel confident that we will emerge well positioned to continue our transformation and maintain our leadership position within the beauty category,” Perelman said. “Beauty is a resilient industry and we are already seeing signs of a return to strong sales activity in China and other markets. Elizabeth Arden, e-commerce and our personal-care products, including Revlon hair color, also maintained their strength despite the global closure of key markets. For the quarter, our e-commerce business grew approximately 47 percent and represented more than 12 percent of our total net sales, almost doubling the scale of our e-commerce business since the first quarter of 2019. With a streamlined operation, lower costs and a stronger balance sheet, we are confident that Revlon will be able to weather the pandemic crisis, continue to serve our consumers and customers and drive value for all our stakeholders.”
Last week, Revlon closed on an $880 million term loan facility, $200 million of which went to retire a prior facility.
The company plans to use the net proceeds of $516 million toward general corporate purposes.