Revlon, Inc., a beauty company based in New York, has reported a 1.8% decrease in sales for the first quarter of 2021 compared to the previous year. The decline in sales is attributed to the negative impact of the Covid-19 pandemic, which resulted in a decrease of approximately $44 million in revenues.

Despite the overall decline, Revlon’s Elizabeth Arden and fragrance segments experienced double-digit growth in the quarter. Elizabeth Arden’s sales increased by 17.9% to $112.2 million, while fragrance sales rose by 13.3% to $74.8 million.

However, Revlon’s flagship brand did not perform as well, with sales dropping by 10.9% from $181.8 million to $162.0 million. The company’s portfolio segment, which includes brands like Almay, SinfulColors, American Crew, CND, and Cutex, also saw a decline in sales of 12.7% to $96.0 million.

In terms of geographical breakdown, Revlon’s sales in North America decreased by 3.1% to $226.2 million, while international sales declined by 0.3% to $218.8 million. E-commerce sales, on the other hand, grew by approximately 5% year over year and accounted for 13% of the company’s total quarterly revenues.

Despite the revenue decrease, Revlon was able to narrow its loss for the quarter. The company reported a net loss of $96.0 million, or $1.79 per diluted share, compared to a loss of $213.9 million, or $4.02 per diluted share, in the same period last year.

To address the challenges and drive growth, Revlon has expanded its Revlon 2020 Restructuring Program with the introduction of the Revlon Global Growth Accelerator. This program aims to refocus the company’s growth efforts on its Revlon and Elizabeth Arden brands.

The Revlon Global Growth Accelerator Program consists of three main initiatives. The first initiative is to increase organic sales growth, targeting a mid-single-digit compound average annual growth rate through 2023. The second initiative focuses on driving operational efficiencies and cost savings to fuel investments for top-line growth. The company plans to achieve annualized incremental cost reductions of $75 million to $95 million by 2023. Finally, Revlon aims to enhance its capabilities, develop its company culture, and upskill its employees.

The company’s efforts will primarily focus on the Revlon and Elizabeth Arden brands, especially in key markets and channels such as U.S. mass, U.S. prestige, EMEA, and China, as well as its global e-commerce business.

Revlon’s president and CEO, Debra Perelman, stated that the Revlon Global Growth Accelerator Program is a comprehensive transformation program designed to establish a foundation for long-term, sustainable margin and revenue growth. Perelman also expressed confidence in Revlon’s ability to capture future opportunities as the demand for beauty products, including color cosmetics, recovers with the easing of pandemic restrictions globally.

Sources:
https://www.businesswire.com/news/home/20210505005299/en/Revlon-Reports-First-Quarter-2021-Results
https://www.nasdaq.com/articles/revlon-inc.-rev-report-q1-loss-narrower-than-expected-sales-top-2021-05-05