Revlon Swings to Profit as Revenue Climbs
May 06 2016 - 9:46AM
Dow Jones News
By Joshua Jamerson
Revlon Inc. said it swung to a profit as revenue climbed in the
latest quarter, helped by lower but still persistent foreign
currency headwinds.
Revlon Chief Executive Fabian Garcia said that while consumer
sales in the U.S. decreased slightly, "consumption remained strong
and we gained share during the quarter."
In March, Revlon said it appointed Ms. Garcia as its CEO. Mr.
Garcia was previously chief operating officer for global innovation
and growth at Colgate-Palmolive Co.
In January, controlling shareholder and Chairman Ronald O.
Perelman disclosed he was exploring strategic alternatives for the
company. Then-Chief Executive Lorenzo Delpani said in February that
he would step down as president and CEO as of March 1 for personal
reasons.
Sales in Revlon's consumer segment fell 1.3% to $320 million.
However, excluding foreign exchange effects, sales in the segment
grew 2.5%, thanks to higher sales of Revlon hair and nail products
as well as its Sinful Colors cosmetics. Sales in the professional
segment grew 2.7%, excluding currency effects, to $115.1 million in
part because of sales increases in its American Crew men's grooming
products. Including currency headwinds, professional sales edged up
0.8%.
Over all, the company reported a profit of $11 million, or 21
cents a share, compared with a year-prior loss of $900,000, or 2
cents a share. Excluding items, the company said it earned 25 cents
a share compared with a penny a year ago.
Total revenue at the New York-based company edged up 0.3% to
$439.6 million. Excluding foreign exchange impacts, sales rose
3.6%.
For the quarter, the company said it gained $3.4 million on
foreign currency compared with a loss of $15.9 million in the
year-ago quarter, helped by the revaluation of an intercompany
loan.
Shares of Revlon, which have risen 28% in the last three months,
were inactive in premarket trading.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
May 06, 2016 09:31 ET (13:31 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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