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Revlon posts a drop in sales and expands restructuring plans

Cosmetology company based in New York Revlon, Inc. Announced on Monday that first-quarter sales were down 1.8% year-on-year and announced the Revlon Global Growth Accelerator, an extension of the existing Revlon 2020 Restructuring Program.With Revlon Elizabeth Arden brand.

Instagram: @revlon

The company’s net revenue for the first quarter, which ended March 31, 2021, was $ 445 million, compared with $ 453 million in the year-ago quarter. This decline was primarily related to the impact of the Covid-19 pandemic, with Revlon estimates having a negative impact on first-quarter earnings of approximately $ 44 million.

The company’s Elizabeth Arden and Fragrance segments both achieved double-digit growth this quarter, with former sales of $ 112.2 million, up 17.9% year-on-year, while the latter sales were 13.3%. It increased to $ 74.8 million. ..

But the group’s flagship brand, Revlon, didn’t work that well. Revenue decreased 10.9% year-on-year from $ 181.8 million to $ 162 million. The company’s portfolio segment includes brands such as: Almei, SinfulColors, American Crew, CND, and Cutex also saw sales fall 12.7% to $ 96 million.

By region, Revlon sales in North America were down 3.1% to $ 226.2 million and overseas by 0.3% to $ 218.8 million.

Overall, the company’s e-commerce channel revenue was up about 5% year-over-year, compared to 12% in the first quarter of 2020, accounting for 13% of the Group’s total quarterly revenue. Channel progress this quarter reflects the company’s double-digit growth. EMEA mass retailers, professional and fame franchises, Asian mass retailers, North American professional and fame franchises.

Despite the decline in overall earnings, the group was able to reduce its quarterly losses. Revlon’s total net loss in the first quarter of 2021 was $ 96 million, or $ 1.79 per diluted share, compared to $ 213.9 million, or $ 4.02 per diluted share, in the year-ago quarter.

The company’s extended Revlon Growth Accelerator Program revolves around three major initiatives. First, the Group intends to increase intrinsic sales growth and has set a goal of achieving a combined average annual growth rate in the mid-single digits by 2023.

The second pillar focuses on driving operational efficiency and cost savings to drive investment for topline growth. By 2023, the company plans to realize incremental cost savings of approximately $ 75 million to $ 95 million annually.

Finally, Revlon wants to build its capabilities while improving employee skills and developing its corporate culture.

According to the group, its efforts will focus on the Revlon and Elizabeth Arden brands, especially in major markets and channels such as the US masses, US fame, EMEA and China, and their global e-commerce business.

“Our Revlon Global Growth Accelerator Program […] Debra Perelman, President and Chief Executive Officer of Revlon, said in the release:

“We look forward to a continued recovery in demand for beauty products, including color cosmetics, as pandemic regulations are relaxed globally, and we are in a good position to seize future opportunities for Revlon, especially in RGGA. I believe, “added the executive.

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Revlon posts a drop in sales and expands restructuring plans

Source link Revlon posts a drop in sales and expands restructuring plans

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