NEW YORK — Beauty company Revlon posted a net loss for the third quarter due to charges, as sales rose 2.9% thanks to higher net sales of Revlon color cosmetics and the inclusion of net sales of Pure Ice.
Net sales for the quarter totaled $347 million, up $9.8 million, or 2.9%, compared with the year-ago period. Excluding unfavorable foreign currency fluctuations, net sales rose 4.8%.
Net loss for the quarter was $15 million, or 29 cents per diluted share, which included $24.1 million ($23.1 million after tax) of restructuring and related charges and another charge of $2.2 million, before and after tax, related to the litigation, compared with net income of $500,000 or nil per diluted share. Net loss in the third quarter of 2012 included $11.5 million of income tax expense, compared with $22.1 million in the third quarter of 2011.
In the United States, net sales were $192 million, an increase of 4% compared with the same period last year. According to the company, the increase was primarily driven by higher net sales of Revlon color cosmetics and the inclusion of the net sales of Pure Ice. These increases were partially offset by lower net sales of Almay color cosmetics, Revlon ColorSilk and Mitchum antiperspirant deodorant.
“In the third quarter, we continued to execute our strategy of profitably growing our business as we grew net sales by 4.8%, maintained competitive operating income margins, and improved free cash flow. We continue to bring highly innovative, consumer-preferred new products to the marketplace. In the quarter, we also announced actions to drive operating efficiencies, which, once fully implemented, are expected to generate annualized cost reductions of approximately $10 million. These actions are further enabling us to invest in the execution of our strategy while maintaining highly competitive margins,” stated Revlon president and CEO Alan Ennis.