Revlon to exit China, cut jobs
NEW YORK — Beauty company Revlon is exiting its operations in China, which represents about 2% of the company’s net sales, and is eliminating about 1,100 jobs.
In the Dec. 30 filing with the Securities and Exchange Commission, Revlon stated that the job cuts, which will take place primarily in China, will include the elimination of about 940 beauty advisers retained indirectly through a third-party agency.
As a result of the restructuring, the company expects to incur approximately $22 million of pre-tax restructuring and related charges, which are comprised of approximately $10 million in employee-related costs, including severance and other contractual termination benefits, and other costs of approximately $12 million consisting primarily of sales markdowns and inventory write-offs. As a result of these actions, the company recorded a charge of $20.9 million in December 2013, with the remaining charges expected to be recorded during 2014. Of the total expected charges of approximately $22 million, $18 million will be cash that is expected to be paid out during 2014.
These restructuring actions are expected to generate annualized cost reductions of approximately $11 million, with roughly $8 million expected to benefit 2014 results, the company stated.
Supermodel Gisele Bündchen to help promote Pantene’s new damage-blocking technology
CINCINNATI — Procter & Gamble’s Pantene brand has tapped supermodel Gisele Bündchen to be the face of the new Pantene campaign debuting in January 2014, which will be the launch of the brand’s new first-ever, clinically-tested, anti-oxidant damage-blocking technology.
The new damage-blocking technology targets, captures and helps reduce copper build-up on hair to help prevent oxidative damage, which over time leads to a new dimension of strong, healthy hair. This technology will be across most Pantene shampoo formulas and works to preserve the long-term health of hair.
Pantene will also launch the new Damage Detox Collection, designed for women in need of an elevated level of damage repair looking to essentially “reset” their hair, is the first-to-mass detoxifying shampoo, conditioner, and treatment system that cleanses impurities, protects from oxidative damage and provides shine.
Bündchen will appear in all elements of the brand’s holistic marketing campaign, including TV and print advertising, in-store displays, iMedia and public relations outreach. The international supermodel has been representing Pantene in Brazil since 2007.
“Gisele is truly a woman who has it all – not only does she have one of the most iconic heads of hair in the beauty world but she is also a true role model with a huge heart,” Kevin Crociata, marketing director of North American Hair Care at P&G said. “We want to celebrate Gisele not only for her beauty, but also her genuine passion to empower women to be their best selves. Her tremendous career accomplishments, her success as a mother of two wonderful children, and her ongoing philanthropic work are an inspiration for women to be beautiful both inside and out. We are proud to now have her as part of our North American Pantene family.”
Report: U.S. retail sales rise 3.5% during holiday season
PURCHASE, N.Y. — U.S. retail sales reportedly rose 3.5% between Nov. 1 and Dec. 24, 2013 compared to the same period in the prior year. According to data from MasterCard Advisors SpendingPulse, sales of holiday-related categories, such as clothing, electronics and luxury goods, rose 2.3%, after rising 0.7% in 2012.
The categories of jewelry and children’s apparel showed the strongest sales improvements, while men’s and women’s apparel performed the poorest compared to the previous year. Electronics and non-jewelry luxury items reported flat sales. Discounts reportedly helped fuel holiday sales growth.