NEW YORK — Beauty brand Revlon posted a net loss during the first quarter, including charges, as net sales rose 2.1%, excluding the unfavorable impact of foreign currency fluctuations.
“Our strategic goal is to drive profitable growth and, in the first quarter of 2013, we grew net sales by 2.1%. We introduced several successful, consumer-preferred products in the marketplace and we increased support behind our brands. Our SinfulColors acquisition performed very well, and we are on track with the integration of our more recently acquired Pure Ice brand, which is also performing well. Lastly, in the quarter, we improved our capital structure by refinancing our senior notes and amending our bank term loan, reducing interest rates and extending maturities on our debt,” stated Alan T. Ennis, president and CEO.
Net sales in the quarter were $331.9 million, compared with $330.7 million in the year-ago period. The increase was primarily driven by higher net sales of Revlon and SinfulColors color cosmetics and the inclusion of the net sales of Pure Ice, partially offset by lower net sales of Almay color cosmetics and Revlon ColorSilk hair color.
Net loss during the quarter was $6.9 million, or 13 cents per diluted share, compared with net income of $8.5 million, or 16 cents per diluted share, in the year-ago period. Net loss in 2013 included charges of $27.9 million ($16.9 million after tax) related to the 2013 refinancing of the company’s senior notes, the amendment of its bank term loan and the $8.3 million gain on the insurance settlement noted above.
In the United States, net sales were $192.1 million, up 4% compared with the year-ago period, the company stated.