NEW YORK — Revlon, which has been taking steps to improve its capital structure, posted a boost in second-quarter net sales, largely due to the inclusion of the recently acquired Sinful Colors brand and higher net sales of Revlon color cosmetics.
"In the second quarter of 2011, consistent with our strategy of driving profitable growth, we delivered top line growth of 4%, while supporting our brands at appropriate levels and maintaining competitive operating margins," Revlon president and CEO Alan Ennis said.
"From a marketplace perspective, we introduced successful, innovative, high-quality, consumer-preferred products into the global marketplace, and our acquisition of Sinful Colors is transitioning well and performing to expectations," Ennis continued. "In the quarter, we improved our capital structure by refinancing our bank credit facilities, reducing the interest rates on our debt and extending maturities."
Net sales in the quarter were $351.2 million, an increase of $23.5 million, or 7.2%, compared with $327.7 million in the same period last year. Excluding favorable foreign currency fluctuations of $10.5 million, net sales increased by $13 million, or 4%.
In the United States, net sales were $194.9 million, an increase of $15.6 million, or 8.7%, compared with $179.3 million in the same period last year. The increase primarily was driven by the inclusion of the net sales of Sinful Colors, which Revlon acquired in March, and higher net sales of Revlon color cosmetics.
Net income during the quarter was $6.5 million, or 12 cents per diluted share, compared with net income of $16.4 million, or 31 cents per diluted share, in the same period last year. Net income in second quarter 2011 included charges of $11.3 million, before tax, related to the early extinguishment of debt as a result of the refinancing of the company's bank credit facilities. The current quarter's net income also included a foreign currency loss of $1.7 million related to the remeasurement of Revlon Venezuela's balance sheet.