Fashion Brand Revlon announced its first quarter results for 2018. The report came in with a revenue miss and sales declines in most of its sectors.
Revlon’s net sales declined 5.7% during the quarter. This was driven by the declines recorded for the Revlon, Portfolio and Fragrances sectors.
Revlon segment net sales recorded a 6% drop to $229.1M as well. The lower net sales of Revlon color cosmetics and Revlon ColorSilk hair color forced the decline recorded during the period. This was the result of the impact of service level disruptions at the Company's Oxford, N.C. manufacturing facility and consumption declines in North America.
“Our quarterly results continue to reflect the challenges the Company faces in the current mass retail and beauty environment in the United States. While our international sales remain strong, we are aggressively driving change and innovation in our brands, products, and sales processes to meet these challenges head on. We are seeing significantly accelerated sales growth across all our digital platforms, positive consumer responses to our new brand campaigns, and are confident in the future”, Executive Vice Chairman of the Board Paul Meister, told reports.
Additionally, the Total North America sales indicated an 11.9% decline to $283.4M, contrary to the rise recorded for the international segment 1.5% to $277.3M during the period.
Meanwhile, the adjusted gross margin rate saw improvements during the period. The company added 60 bps to 58.7% in the first quarter. However, the Adjusted EBITDA decked severely. The sector noted a 86.7% decline to $4.2M respectively.
Revlon, Inc. is an American multinational cosmetics, skin care, fragrance, and personal care company founded in 1932 and based in New York City.
In other news, Revlon has reportedly been revising its global media development and purchasing business as well. It was also reported that Mediacom will not be participating in the said media review.
Back in 2016, the cosmetics company invested $400 million on paid media globally. Additionally, MediaCom acted as the company’s media planning and buying zone in which had a global reach.
"On March 23, Revlon informed us of its intent to begin a media review. We responded within 24 hours, letting the client know that we did not wish to participate. We thank Revlon for the opportunity to help grow its global brands over the past seven years and wish them well," the representative told reports.
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