NEW YORK — While posting a “strong” first quarter, Revlon did see mixed dynamics for the consumer and professional segment, said Lorenzo Delpani, president and CEO.
The company reported on Wednesday that net sales, on a GAAP as reported basis, were $469.8 million versus $325.9 million in the year-ago period. Results reflect the inclusion of net sales of brands acquired from the Colomer Group in the first quarter.
Income from continuing operations were (net of taxes) $8.7 million, or 17 cents per share, compared with a loss of $4.5 million (net of taxes), or 8 cents per share, in the year-ago period.
In looking at the consumer segment, it was essentially flat as a result of market softness, while the professional segment had one of its best quarters ever, said Delpani during the company’s conference call on Wednesday.
“It’s worth noting that the consumer segment, albeit flat, benefited from a favorable return adjustment as we are reducing the quantity of new product launches. This is the result of the implementation of our fewer, bigger, better innovation strategy. Our strategy focus on more quality and less quantity of innovation and, therefore, we should see a lower level of returns going forward,” Delpani said.
The consumer segment, which posted sales of $339.5 million during the quarter, includes the results of retail brands acquired in the TCG acquisition, which represented $15.5 million of net sales in the first quarter.
In the United States, net sales were $250.2 million compared with $232 million of pro forma U.S. net sales in the first quarter of 2013, an increase of 7.8%. Higher net sales of CND Shellac and American Crew products during the quarter contributed to the increase.