Revlon has recently reported its earnings result for the second quarter of the current year with a loss of $36.5 million year over year. The cosmetic giant’s Net Sales declined at about 3.9% to $645.7 million dollars for the quarter in which has dragged down the Adjusted EBITDA by 32.7%, states the company.
Correspondingly, Revlon posted a 70 cents loss on a per-share basis. The losses, adapted for one-time expansions and expenses, summed up to 46 cents for each share. Also, the beauty company announced a revenue data of $645.7 million for the said period.
Since the beginning of the current year, shares of Revlon have declined by 39% already. In a year-over-year basis, the company lost 49% in total.
“While our financial performance and sales results in the US remained soft in a challenging retail environment, we are encouraged by the global growth of our iconic Revlon and Elizabeth Arden brands, our international sales which remain robust and the key strategic initiatives that we have implemented during the quarter, which we expect will drive sequential improvements in company performance,” CEO and President of Revlon Fabian Garcia told reports.
Global PR Duties
Amidst the global restructuring of Revlon’s individual brands, the cosmetics giant is now reevaluating its global public relations duties as part of its strategy. The current development of this strategy is reported to be close to its remaining stages as the company united its universal ad businesses with WPP’S Grey and Mediacom, according to sources.
Also, the strategy is mostly focused on North America in which the company holds 60% revenue of. The revenue also covers Revlon’s networks throughout the corporate, consumer and social media.
Revlon is estimating to hit $5bn in sales by reinvigorating its product portfolio such as Revlon Cosmetics, Elizabeth Arden, Charlie, Curve and Elizabeth Taylor Fragrances. Currently, the company is only generating $3bn in total sales globally, especially after acquiring Elizabeth Arden Inc., in the preceding year.
Part of the restructuring strategy, the cosmetic company has generated four different groups in which will emphasize on the Revlon brand, Elizabeth Arden products, fragrances and other labels, counting Almay and Mitchum. Such moves shadow the coming of Chief Executive Officer Fabian Garcia in the previous year, in which he aimed to help Revlon capitalize and rejoin to consumer essentials more promptly.
The plan is expected to save $140m in costs. Additionally, Revlon looks forward to regenerate its Asia-Pacific revenues, assuming that the growth in markets such as China, Japan, Korea and Taiwan has potential to up revenues.
Since the earnings date, Revlon somehow rallied bullishly by gathering a hefty amount of bulls in its latest trend. However, in the last trading session, it seemed like the company struggled to maintain its trend and it close with a slightly bear-dominated candle.
More so, the Relative Strength Index of Revlon mirrored its trading performance, indicating a down trend as well. It may have a hard time surpassing the 40’s region so far. It may trade within or below the 40’s region in the coming trades. Specifically it is at 41.57.
Lastly, its Coppock Curve is still heavily down below the negative region. It is down deep at -27.22 and it may also have a hard time going to the positive region with this kind of performance. A sell would be advised.
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