Revlon U.S. sales swing to a loss in Q4

NEW YORK — Beauty company Revlon announced on Wednesday that fourth-quarter sales rose 28%, benefiting from the inclusion of sales at the Colomer Group, which it acquired in October.

Net sales for the quarter totaled $491 million, up 28% compared with $383.5 million in the year-ago period. On a foreign currency fluctuations or XFX basis, total net sales rose 31.2%, benefiting from the inclusion of $116.8 million of net sales related to the Professional segment beginning on The Colomer Group acquisition date. Excluding the acquisition, total net sales rose 0.7% on an XFX basis.

Net loss for the quarter was $33.1 million, compared with a gain of $46.5 million in the year-ago period.

In the United States, the company posted a decrease in net sales of 0.3% to $218.6 million. Lower sales of Almay color cosmetics were offset by higher net sales of Revlon color cosmetics, Revlon ColorSilk hair color and Revlon Beauty Tools.

For full-year 2013, net sales were $1.50 billion, up 7%. On an XFX basis, total net sales rose 9.6% for the year, benefiting from the inclusion of net sales related to the Professional segment beginning on The Colomer Group acquisition date, as well as a full year of Pure Ice sales.

For full-year 2013, the company posted a loss of $5.8 million, compared with a gain of $51.1 million in the year-ago period.

“We successfully completed our transformational acquisition of The Colomer Group on October 9, 2013, reuniting the global Revlon brand and expanding Revlon back into the professional channel. Since the acquisition, we have taken further actions to strategically move the combined business forward. We finalized our integration plan, announced our plans to realize annualized cost reductions related to integrating TCG of up to $35 million by the end of 2015, and began to take actions to achieve these benefits. Also, in December 2013 we announced the exit of our business operations in China, which is expected to generate additional annualized cost reductions of $11 million. Given the transformational nature of our TCG acquisition and our overall cost reduction opportunities, the primary focus for us in 2014 will be the successful execution of these programs to achieve the combined synergies,” said Revlon president and CEO Lorenzo Delpani.

 

Login or Register to post a comment.