Revlon, the beauty conglomerate based in New York, has reported a widened net loss in the third quarter of 2021. The company’s net loss has increased to $53.1 million, compared to a loss of $44.5 million in the same period last year. This increase in loss is primarily due to a gain related to debt extinguishment of $31.2 million in the third quarter of 2020. The company also faced an unfavorable variance in foreign currency, leading to a loss of $19.7 million in the recent quarter.

Despite the increased loss, Revlon has seen overall revenue growth in the third quarter. Net sales reached $521.1 million, a 9.2% increase from $477.1 million in the third quarter of 2020. This growth was observed across all segments of the company.

The Revlon segment, which is the namesake brand of the company, generated sales of $173.0 million, showing a 4.2% increase from $166.0 million in the previous year. Sales in North America rose by 2.3% to $88.4 million, while international sales increased by 6.3% to $84.6 million.

The Elizabeth Arden segment also performed well, with sales totaling $122.8 million, marking a 15.5% increase from $106.3 million in the same period last year. North American sales rose by 5.9% to $32.3 million, and international sales grew by 19.4% to $90.5 million.

The group’s portfolio segment, consisting of brands like Almay, SinfulColors, American Crew, and Cutex, achieved sales of $112.7 million, a year-over-year increase of 13.2%. This growth was primarily driven by a 25.5% increase in North America, partially offset by a 5.5% decline internationally.

Revlon’s fragrances business also experienced growth, with sales increasing by 7.0% to $122.6 million. North American revenues rose by 2.9%, while international sales grew by 19.6%.

Revlon’s president and CEO, Debra Perelman, expressed satisfaction with the company’s results, stating that their strategy is proving successful. She pointed out the growth in revenue across all segments and emphasized the double-digit growth in the e-commerce sector. Perelman also highlighted the progress in implementing their Revlon Global Growth Accelerator program, aimed at supporting long-term profitable growth.

Year to date, Revlon has achieved sales of $1.46 billion, a 14.5% increase from the same period last year. The net loss in the first three quarters of the year was $216.8 million, compared to a loss of $385.2 million in the previous year. Diluted loss per share was $4.02, compared to $7.22 in the same period last year.

Despite the widened loss in the third quarter, Revlon remains optimistic about its future growth prospects. The company’s ongoing focus on strategic initiatives and the implementation of the Revlon Global Growth Accelerator program is expected to drive long-term profitability.

Useful Links:
Revlon Official Website
Revlon on Reuters