The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
NEW YORK, United States — Revlon Inc. rose as much as 6.2 percent after chief executive officer Fabian Garcia said he's encouraged by a strong performance in the third quarter so far and confident that the company can meet its profit targets.
Revlon, which agreed to acquire Elizabeth Arden Inc. last month, plans to introduce more new products later this year, Garcia said Friday on a conference call with analysts. The company will roll out lower-priced nail products under the professional CND brand to compete at nail salons and it also plans innovation in its hair-colour segment, Garcia said.
“As we are well into the third quarter already, we are encouraged by our continuous recent strong performance, optimistic of our future and excited about the growth potential from the acquisition of Elizabeth Arden,” Garcia said. The executive said he feels “positive” in affirming the company’s guidance for earnings before interest, taxes, depreciation and amortisation.
The shares climbed as high as $35.33 in New York. Revlon already had gained 19 percent this year through Thursday.
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Sales Rise
Second-quarter sales rose 1.3 percent to $488.9 million, the New York based company said in a statement Friday. That marks the third-straight quarterly gain. Net income fell 68 percent to $8.3 million, hurt by items such as acquisition and integration costs as well as foreign-currency losses on intercompany loans.
Revlon, controlled by billionaire Ron Perelman, aims to reinvigorate Elizabeth Arden, an unprofitable company whose celebrity-branded fragrances had lost favour with consumers. Revlon has kicked off integration planning with Arden’s management team in the past two weeks to work on the future operating model of the combined company, Garcia said. The deal is expected to close at the end of this year.
The merger of the 106-year-old Arden business with 84-year-old Revlon is a bet that a combined distribution network and marketing strategy can broaden their appeal. Garcia said Revlon will present joint business plans with some retailers in due course.
Revlon aims to appeal to the younger generation and is focused on developing its digital strategy.
“We are working to make our name more relevant to younger consumers,” Garcia said. “It’s priority for our business.”
By Stephanie Wong; editors: Nick Turner and Kevin Orland.
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.