Revlon gets vote of confidence from analysts

Revlon gets vote of confidence from analysts

Analysts are confident that Revlon has what it takes to succeed, according to a report published in Forbes’ Great Speculations column.

Market analysts, The Trefis Team, claim that, despite less than stellar results for the second quarter of 2015, the US cosmetics company’s relatively small size (US$2 billion compared to US$30 billion for L’Oréal) works to its advantage, enabling it to be more agile and therefore react to market trends quickly.

“The company seems to know how to survive in the cut throat beauty industry,” claimed the team. “The business of beauty is currently about understanding the consumers’ psyche, adapting to the changing consumer demand, and continuous innovation and strategic moves. Revlon clearly understands these rules.”

According to the team, Revlon has demonstrated its responsiveness with strategic acquisitions, moving into the professional segment with the acquisition of The Colomer Group in mid-2013 and the European perfume market with its purchase of fragrance business CBBeauty in early 2015. What’s more, its Brand Renewal program, launched in 2014, allows it to eliminate under-performing brands and products from its portfolio. The company’s recent exit from Venezuela is a further example of this ability to think on its feet and act fast.

 

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