Problems with its North Carolina manufacturing plant, and steep declines in fragrances, drove Revlon Inc.'s numbers down in the second quarter.
The business posted $606.8 million in net sales for the three months, down 6 percent from the prior year period, with a net loss of $122.5 million — 235 percent greater than the prior-year period's $36.5 million loss. Diluted loss per share was $2.32, compared to 46 cents for the second quarter of 2017.
Revlon's results were affected by continued problems in its Oxford, N.C. manufacturing plant, as well as losses of licenses in the fragrance segment. Those declines were offset by growth from new products from the likes of Almay, and the global expansion of Elizabeth Arden.
For the quarter, Revlon brand sales dipped 10.8 percent, to $258.3 million. The business experienced lower sales of Revlon makeup as well as Revlon ColorSilk hair color, primarily because of the manufacturing problems. Revlon also cited "consumption declines in North America."
Arden sales were up 4.9 percent, to $106.1 million, driven by higher sales of skin care products like Ceramide and Prevage. The portfolio brands segment — which contains Almay and CND — posted a 2.9 percent sales increase, to $147.6 million. That jump was caused by higher sales after Almay's relaunch, as well as higher sales for CND following the release of a new Shellac nail polish innovation.
Fragrances posted the largest decline — 15.1 percent — to $94.8 million in sales.
“Despite SAP service level disruptions at the Oxford, N.C. plant and other broader market impacts, we are starting to see the positive effects of our strategic investments on our growth priorities," said Debbie Perelman, president and chief executive officer. "Our strategy continues to focus on strengthening our brands and enhancing the avenues through which we communicate and connect with our consumers. We are focused on ensuring broad availability of our products where the consumer shops in both brick and mortar and online. We are seeing strong growth in e-commerce and innovation, including a very positive response to the launch of Flesh, our new in-house incubated brand."
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