Revlon’s poor third quarter performance follows on from the embattled beauty business’ lacklustre second quarter
Revlon fell into bankruptcy in June 2022
Revlon sales have slumped by 10.1% for the third quarter period ended 30 September 2022.
The US$52.7m decrease in sales to $468.4m was the result of “unfavourable” foreign currency impacts during the quarter.
The mix of lowered sales, in addition to higher operating costs, resulted in operating income of $12.9m in Q3, down from the $34.1m recorded during the same period last year.
Revlon’s Q3 performance follows on from the embattled beauty business’ lacklustre second quarter results.
Net sales declined by 11% to US$442.6m for the period ended 30 June 2022.
The company has struggled for years with annual sales tumbling from $2.6bn at its peak in 2017 to $1.9bn in 2020.
This was exacerbated by Revlon’s bankruptcy filing on 17 June 2022.
Net losses leapt to $152.8m during the third quarter, primarily related to the charges from the company's Chapter 11 filing.
In August, Revolon pushed back against minority shareholders calling for greater representation in its bankruptcy case.
The MacAndrews & Forbes-controlled company argued that shareholders do not need a special committee as "undoubtedly significant costs of an Official Equity Committee greatly outweigh any speculative benefit".
Revlon urged the US Bankruptcy Court's judge to reject the request as the minority shareholders cannot prove they will "receive a meaningful distribution in the bankruptcy case".