Revlon reports 12.2% drop in net sales for Q2
NEW YORK Revlon announced on Thursday a 12.2% decrease in second-quarter net sales due to lower sales of Revlon and Almay color cosmetics and Revlon Beauty Tools.
“In the second quarter of 2009, while the mass color cosmetics category in the United States, according to ACNielsen, continued to grow, the rate of growth slowed and certain retailers reduced inventory levels versus the year-ago period,” stated Alan Ennis, Revlon president and CEO. “These factors, along with the unfavorable effect of foreign currency fluctuations, impacted our second-quarter results.”
Net sales for the quarter totaled $321.8 million, compared with $366.5 million in the year-ago period, a decrease of 12.2%. Excluding unfavorable foreign currency fluctuations, net sales decreased 7.6%. The company noted that the drop in net sales was driven by lower net sales of Revlon and Almay color cosmetics and Revlon Beauty Tools, partially offset by higher net sales of Revlon ColorSilk hair color.
Net income for the quarter totaled $0.2 million, or nil per diluted share, which included $18.3 million, or 36 cents per diluted share, of restructuring charges. This compares with $19.9 million, or 39 cents per share, in the year-ago period.
In late May, the beauty company announced a worldwide organizational restructuring that involved consolidating certain functions; reducing layers of management to increase accountability and effectiveness; streamlining support functions; and further consolidating the company’s office facilities in New Jersey. The moves resulted in the elimination of roughly 400 positions worldwide, including about 325 current employees and 75 open positions.
The restructuring, which has been fully implemented, is reducing Revlon’s annualized costs by $30 million, of which $15 million is expected to benefit results in the second half of 2009, according to Ennis.
MAC Cosmetics, Milk Studios partnering for New York Fashion Week
NEW YORK MAC Cosmetics, which is part of The Estee Lauder Cos., is partnering with Milk Studios during New York Fashion Week in September to support designers at the iconic Meatpacking District space.
MAC and Milk will offer designers multi-layered support including space for their shows, presentations and press appointments. A designer will also have the option to hold castings, hair and makeup tests and book shoots at The Milk Building throughout the duration of Fashion Week.
“As a longtime supporter of New York Fashion Week, MAC is proud to take its advocacy to the next level with this initiative,” stated Estee Lauder Group president John Demsey. “The MAC brand celebrates fashion and encourages creativity. We are delighted to help bring the vision of these talented designers to fruition.”
Eucerin educates bloggers on sun exposure with ‘Time Machine’ Aging Simulator
WILTON, Conn. Eucerin, a Beiersdorf brand, was a sponsor of the BlogHer Conference 2009 recently held in Chicago and was on hand to educate the blogging community about the importance of incidental sun exposure and to provide a glimpse into their skin’s future using Beiersdorf’s proprietary “Time Machine” Aging Simulator.
This year marked Eucerin’s first appearance at the annual conference, held July 24 and 25.
“Today, more and more people are tapping into their online networks for health and beauty tips, and we are pleased to offer these influential community leaders a unique opportunity to learn about the importance of everyday sun protection through Eucerin and to truly see their skin in a new light and with our ‘Time Machine’ Aging Simulator,” stated Nicolas Maurer, VP marketing for Beiersdorf.
The “Time Machine” Aging Simulator animates the facial aging process, examining intrinsic and extrinsic aging factors on the shape and texture of the face. This projects how your skin will age and allows you to combat early warning signs of skin damage, such as incidental sun exposure.
In addition to receiving a customized view of the aging process, attendees were also educated about ways to battle the damaging effects of incidental sun exposure and the benefits of using such products as Eucerin Everyday Protection Body Lotion SPF 15 and Face Lotion SPF 30.