The beauty company said its preliminary accounting of the second quarter showed reported operating income of about $52 million, down from $61 million a year earlier, while adjusted earnings before interest, taxes, depreciation and amortization slipped modestly, to about $89 million from $90 million.
Net sales for the three months ended June 30 grew 1.3 percent to $489 million from $482 million. Excluding the impact of currency fluctuations, sales rose 3.5 percent.
Fabian Garcia, president and chief executive officer, pointed to the sales gain and said: “Once again, growth was fueled by product innovation and strong performance by established brands in both the consumer and professional segments.”
While overall professional segment sales were flat for the quarter, the company said its consumer segment’s gains were driven by “higher net sales of Revlon color cosmetics, Cutex nail products, SinfulColors color cosmetics and Mitchum antiperspirant deodorants, partially offset by lower net sales of Almay color cosmetics.”
Revlon will give a full update on its quarterly results in a conference call with Wall Street analysts July 29.
Garcia said the deal to buy Arden would close this year and is subject to customary closing conditions.
The corporate combination will give Revlon a much more complete beauty company, bringing together Revlon’s expertise and Arden’s savvy in prestige.
Financier Ronald Perelman, who controls Revlon, said when the deal was inked last month that “this is an important acquisition on Revlon’s path to adapt to a changing landscape. Together with Elizabeth Arden, and building on Revlon’s momentum, our company will be better positioned to compete in all major beauty categories with more products and a broader global footprint.”
The global beauty industry is being rapidly transformed by dealmaking.
A year ago, Coty Inc. inked a $12.5 billion deal to take 43 brands from Procter & Gamble Co. and create a new beauty giant. That transaction — a complicated Reverse Morris Trust — is still to be sorted out and is expected to be closed in October.