Revlon blames another quarterly loss on poor US sales

By Sarah Parsons 19-Mar-2018

The cosmetics giant and Elizabeth Arden owner has been hit by disappointing sales and profit losses this Q4 2017

Revlon's new Live Boldly ad

Revlon has announced another financial slump, due to disappointing Q4 sales in the US.

The cosmetics giant has reported a net loss of US$76.9m, following a $36.5m loss in the prior-year period.

Net sales were $786.6m, representing a 1.8% decrease.

Revlon’s consumer category saw a net sales loss of 3.2% to $355.7m, said to be hit by declining interest in Almay colour cosmetics.

Meanwhile, Revlon’s professional segment also followed a downward trend.

The 6.3% loss to $111.8m was attributed to a continued decline of American Crew men’s grooming products.

Elizabeth Arden’s profits increased by $48.7m, compared to $35.7m in Q4 2016. Along with a net sales boost of 2.3%, the brand was supported by international sales of its skin care and fragrance offering – offsetting disappointing celebrity fragrance sales.

A regional divide

Elizabeth Arden released a travel campaign last year

Across all of Revlon’s regional divisions, the US reported Q4 losses – notetably Revlon Professional dropped by 22.5% to $44.1m in the region.

Elizabeth Arden’s international sales were the success story of the last quarter, as the division saw an increase of 20.7% to $143.6m.

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China, travel retail and higher net sales of heritage fragrances in Germany, South Africa and Australia also bolstered profits.