Revlon Inc., a cosmetics company based in New York, has reported a 10% decrease in revenues for the third quarter. This decline comes as Revlon continues to face difficulties in its operations following its filing for Chapter 11 financial restructuring in June. Net sales for the quarter ending September 30 amounted to $468.4 million, compared to $521.1 million during the same period last year, resulting in a decrease of $52.7 million.

When broken down by brand, Revlon experienced a slight increase in sales to $176.6 million, up from $173 million in the previous year’s quarter. However, Elizabeth Arden witnessed a decrease in sales, dropping to $120.7 million from $122.8 million last year. The company’s portfolio category also suffered, falling to $83 million from $112.7 million, while fragrance sales decreased to $88.1 million from $112.6 million in 2021.

Consequently, Revlon’s net losses widened by 188% to $152.8 million, compared to a net loss of $53.1 million in the previous year. Over the first nine months of 2022, the company reported a net loss of $495.4 million, compared to $216.8 million in 2021. Revenues year-to-date also decreased to $1.39 billion from $1.46 billion.

Due to the ongoing bankruptcy proceedings, Revlon has decided not to provide comments on its results or hold an earnings conference call. The company filed for Chapter 11 bankruptcy on June 15, seeking relief under the U.S. Bankruptcy Code. In the midst of this process, Revlon secured $575 million in new financing from its existing lenders. Towards the end of October, the company announced that it is considering sale offers as a means to expedite its exit from Chapter 11. Revlon must submit a bankruptcy plan by January 19.

These sales declines and widening net losses demonstrate the significant challenges that Revlon is currently facing in its operations. The company’s exploration of sale options indicates a strategic shift in its efforts to recover from the financial restructuring. Revlon will need to carefully evaluate potential offers and create a comprehensive bankruptcy plan in order to successfully emerge from Chapter 11.

Useful links:
1. Revlon’s third-quarter financial report
2. Chapter 11 bankruptcy overview