NEW YORK Lower sales of Revlon and Almay color cosmetics, as well as Mitchum antiperspirant/ deodorant, hampered Revlon’s fourth quarter and resulted in a 6.3% drop in U.S. net sales.
For the quarter ended Dec. 31, net sales in the United States were $187 million, down $12.6 million, or 6.3%, compared with $199.6 million in the year-ago period. Revlon stated that the decline was driven primarily by lower net sales of Revlon and Almay color cosmetics and Mitchum, partially offset by higher net sales of Revlon ColorSilk hair color.
Total net sales for the quarter were $344.6 million, compared with $334.2 million in the year-ago period, an increase of 3.1%. Excluding favorable foreign currency fluctuations of $16.8 million, total net sales slipped by 1.9%.
Net income during the quarter was $12.8 million, or 24 cents per diluted share, compared with $11.3 million, or 22 cents per diluted share, in the year-ago period.
Net cash provided by operating activities during the quarter totaled $32.3 million, compared with net cash used in operating activities of $10.8 million in the year-ago period. Free cash flow in the quarter was $28.2 million, compared with negative free cash flow of $12.9 million in the same period last year.
The beauty company noted that for the first half of 2010 it is launching several new key products including:
- Revlon PhotoReady Makeup, which contains photochromatic pigments that bend and reflect light to give a flawless, airbrushed appearance in any light. The ad campaign promoting the launch will feature actress and Revlon spokesperson Halle Berry.
- Revlon ColorBurst Lipstick, which features elasticolor technology that provides an instant burst of rich, true color that feels virtually weightless on the lips. The ad campaign for Revlon ColorBurst Lipstick, which is available in 20 shades, will feature actress and Revlon spokesperson Jessica Alba.