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.”
Local Rite Aid to host new Maybelline New York lip product launch
NEW YORK Maybelline New York will be center stage on July 30 with the cast of Broadway’s “Chicago” to launch Maybelline New York’s new Color Sensational Lipcolor at the Rite Aid in Grand Central Terminal and outside under the Grand Central taxi stand at 43rd Street and Vanderbilt Avenue, Rite Aid announced Monday.
Highlighting the event will be live musical performances by the cast of Broadway’s “Chicago” under the Grand Central taxi stand at 3:30 and 4:30 p.m.
Professional makeup artists will provide lip-scriptions and help women identify their perfect lip shades and offer first come, first served mini sensational lipcolor makeovers at Rite Aid, 26 Grand Central Terminal, July 30, 8 to 10 a.m., 12 to 2 p.m. and 3 to 7 p.m. Makeup artists also will be outside under the taxi stand at Grand Central Terminal 3 to 7 p.m.
Visitors can enter to win free tickets to Broadway’s “Chicago,” with Maybelline New York giving away a free pair of tickets every hour between 3 and 7 p.m. Coupons for Maybelline New York’s Color Sensational Lipcolor, gift bags filled with sample size products and 50% off discounts for “Chicago the Musical” will also be available on a first come, first served basis.
“We’re thrilled to support the national debut of Maybelline New York’s Color Sensational Lipcolor with the lipcolor makeovers at our Grand Central Station Rite Aid store,” stated Judy Wray, Rite Aid category manager, cosmetics/ fragrances. “From the Chicago Dance Mob street team dressed in costume promoting the event inside and outside Grand Central Station to the street performances of the cast of Broadway’s ‘Chicago,’ this is a tremendously creative promotion that is sure to get some attention.”