While Revlon posted a slight increase in sales for the second quarter, income dropped because of foreign currency effects on inter-company loans.

Revlon released sales figures earlier in July, posting a 1.3 percent year-over-year net increase. Net sales for the three months ended June 30 were $488.9 million, up from $482.4 million in the year-ago period. Adjusted for currency effects, net sales gained 3.5 percent. Revlon shares closed up 6.7 percent at $35.49 on Friday.

Net income for the quarter was down 68 percent, to $8.3 million, which the company said was because of a $14.3 million decrease driven by foreign currency losses on intercompany loans in the second quarter. Revlon has intercompany loans denominated in U.S. dollars from the Colomer Group and other recent acquisitions, the company said. Earnings per diluted share totaled 16 cents, down from 50 cents in the prior-year period.

For the first half, Revlon posted net sales of $928.5 million, up from $920.9 million in the prior-year half. Net income for the first half was $19.3 million, down from $25.1 million in the first half of 2015.

“We ended the quarter on a strong trajectory with net sales growth up 3.5 percent, adjusted for foreign currency,” said Revlon chief executive officer Fabian Garcia. “Growth was driven by product innovation and strong performance by established brands in both the consumer and professional segments and in international territories. Among other growth drivers, we are delighted by the continued strength of Revlon’s flagship brand which has posted year-to-date consumption growth of 3.9 percent, outperforming the color cosmetic mass category.”

Revlon called out Kylie Sinful Shine, Mitchum deodorant and Cutex nail products as solid performers.

For the quarter, Revlon brought in $359.5 million in net sales from its consumer segment, a 1.4 percent increase. Profit for the consumer segment decreased 3.3 percent to $81 million, which Revlon said was because of “unfavorable impact of product mix and the impact of FX transaction within cost of sales.” Losses were driven by lower sales of Almay color cosmetics and Revlon ColorSilk hair color, and partially offset by higher net sales of Cutex nail products and Revlon beauty tools.

“We are working to make Almay more relevant to younger consumers,” Garcia said. Plans are also under way to build up ColorSilk, which has been hurt by new competitors in its space. “We have plans to launch several innovations in the hair color segment to revitalize that segment starting in the third quarter,” Garcia said.

The Revlon brand just achieved its first full year of growth, according to Garcia. “The Revlon brand continues to grow share and has done so for the past 52 weeks,” he said on the company’s earnings call. “We feel very good about the innovation that is coming in the second half.”

The professional segment had a 0.1 percent decrease in sales for the quarter, posting $123.3 million in net sales from $123.4 million in net sales year-over-year. Profit for that unit dropped 0.8 percent, to $24.1 million from $24.3 million. Revlon noted that in the professional segment, higher sales of Revlon Professional hair products and American Crew were offset by lower sales in CND products, especially in Russia, because of macroeconomic conditions, Garcia said.

Garcia continued, “During the second quarter of 2016 we also announced that Revlon signed an agreement to acquire Elizabeth Arden Inc. and our current growth trajectory will continue to provide a strong platform for a successful acquisition and integration. The combined company would enable us to enter or expand into faster growing categories, channels and territories, making us a more diversified and stronger global player.”

Revlon unveiled an $870 million deal for Arden back in June. The beauty firm received about $2.7 billion in financing for the transaction — an increase from the $2.6 billion it had originally planned — which will be used to refinance its own debt as well as extinguish Arden’s.

Arden chairman and ceo E. Scott Beattie, who was also on the call, shared a preview to the company’s earnings, saying that adjusted for currency effects, for the fiscal year ended June 30, Arden’s North America business was up 3 percent, international increased 4.5 percent and the Arden brand experienced its sixth consecutive quarter of growth.

Garcia said Revlon had just been on the road and feedback from investors on the deal was “overwhelmingly positive.”

“Last week we completed the road show for senior unsecured notes, [and] given the significant demand, we upsized the offering to $450 million,” said Revlon chief financial officer Juan Figuereo on the call. The extra capital should give the business more “cushion,” according to Moody’s analyst Brian Weddington.

“In the past two weeks we kicked off integration planning,” Garcia said. The companies are working on synergy captures as well as plotting the combined company’s future operating model, he said. “The aim is to hit the ground running on day one,” he said.