Revlon posts 3Q results
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.
Study: Engaging consumers through social media boosts brand sales
CINCINNATI — Social media engagement between a consumer and brand drives both immediate and long-term sales increases, according to a study released Thursday by LoyaltyOne. The research constitutes a social media marketing breakthrough because it establishes the accountability link long sought by brands that have showered dollars on social media outlets while attempting to prove the return on investment to C-suite skeptics, the company stated.
“The good news is this research delivers the evidence that investment in social media has the potential to return benefits in the form of transactions, profits and ROI, if done well,” LoyaltyOne EVP and CMO Neil Everett said. “The even better news is this study demonstrates that the data obtained through loyalty programs generates a reliable method of measuring this connection.”
The research findings are based on a two-year analysis of brand-customer social media engagement and actual transaction data with Canada’s more than 10-million member Air Miles Reward Program. Consumers who participated in LoyaltyOne’s Air Miles loyalty program earned reward miles by making purchases from its affiliated business partners and services across Canada.
The breakthrough results revealed that Air Miles Collectors who participated in social media events and promotions increased their purchases from Air Miles program partners by 15% to 30% over nonparticipants.
Other highlights from the study included:
- The mere act of writing a short public statement on a social media site spurs significant lifts in transaction activity;
- However, longer, more elaborate posts dealing with redemption experiences (travel, entertainment) created higher lifts than shorter, product-based posts;
- The higher the level of participation in a social media event, the greater the impact on a consumer’s purchasing activity;
- Brands can use social media as a tool to raise the value of lower-volume, high-potential consumers who have more room to increase their spending; and
- Events that encourage participants to recreate the core benefits of a brand have higher lift effects than more generic posts — resembling a “co-creation effect.”
Transaction-based proof that social media participation increases purchases is the outcome of a research effort undertaken as the 2012 LoyaltyOne Social Media Transaction Impact Study.
Complete findings from the 2012 LoyaltyOne Social Media Transaction Impact Study can be found in a white paper titled The Social Media Payoff – Establishing the Missing Link Between Social Media and ROI.
Target unveils new ethnic beauty products at NYC event
NEW YORK — Recognizing the importance of meeting the needs of its ethnic beauty shoppers, Target has in recent years been working to bolster its ethnic sets in-store, and that effort continues, as evidenced by a media event held here Tuesday evening.
The event was held at the Target Studio in New York and served as a showroom to highlight new and existing products, from such ethnic beauty brands as Kinky Curly, Mixed Chicks, Milani, Iman, Camille Rose and Shea Moisture. On hand to greet beauty editors was style expert Tai Beauchamp.
In an effort to better meet the beauty needs of its ethnic shoppers, Target has recently doubled or tripled its multi-ethnic beauty merchandising in select stores, with some sets reaching up to 36 feet. Today Target has more than 1,000 unique multi-ethnic merchandise SKUs in beauty.
Come spring 2013, Target will be the exclusive mass-market retailer for Camille Rose. Founded in 2010 by Janell Stephens, a mother of five and dedicated vegan, Camille Rose is committed to developing natural products that improve health, wellness and beauty. The collection includes body and hair care products ranging from $14.99 to $18.
Target is also the exclusive mass-market retailer for Mixed Chicks, a natural, cruelty-free and vegan hair care brand specially formulated for multi-textured hair, and Kinky Curly hair care products for curly hair. Both brands became available in Target stores in 2012.
Ethnic hair care brand Curls is sold at other retailers; however, Target will be the exclusive retailer of two items previewed at the event — Cashmere Curl Jelly and Gel-les’c — as of spring 2013. Both items are priced at $17.99 each.
Additional new products for spring 2013 include Jane Carter’s Curl Defining Cream; Shea Moisture’s Lemongrass & Ginger Bath, Body & Massage Oil, as well as five different bath soaks; and items by Shea Radiance.