NEW YORK — Beauty company Revlon posted a decrease in third-quarter net sales in the United States partially due to lower sales of Revlon and Almay color cosmetics. However, executives remain optimistic as the recent acquisition of the Colomer Group represents a “significant, strategic step forward for the company.”
In the United States, net sales were $185.8 million, a decrease of 3.2% compared with the year-ago period. According to the company, the decrease was primarily driven by lower net sales of Revlon and Almay color cosmetics, partially offset by higher net sales of Revlon Colorsilk hair color.
Total net sales for the quarter were $339.4 million, a decrease of 2.2%. Excluding unfavorable foreign currency fluctuations of $11.4 million, net sales rose 1.1%.
Net income for the quarter ended Sept. 30 totaled $9.5 million, or 18 cents per diluted share, compared with a net loss of $15 million, or 29 cents per diluted share, in the year-ago period.
“Our net sales during the third quarter increased modestly year-over-year as we grew in each of our international regions, offsetting lower net sales in the United States. We maintained strong operating margins, which, in part, benefited from the execution of our 2012 restructuring plans. We will continue our intense focus on building our brands through innovative, high-quality new products, effective brand communication, appropriate levels of advertising and promotion, and superb execution in all aspects of our business,” stated Revlon vice chairman and interim CEO.
As previously reported earlier this month by Drug Store News, Kennedy is serving as interim CEO following the departure of CEO Alan Ennis to “pursue other interests.”
Earlier this month, the company completed its acquisition of the Colomer Group, including the Revlon Professional business, for a cash purchase price of $665 million. TCG is a beauty company that markets and sells professional products primarily to salons and other professional channels not served by Revlon. The acquisition expands Revlon’s geographic scope with about 50% of TCG’s net sales in Europe, Middle East and Africa, and roughly 40% in the United States.