Revlon Q1 net sales fall 1.8 percent; announces expanded restructuring efforts

Revlon Q1 net sales fall 1.8 percent; announces expanded restructuring efforts

THE WHAT? Revlon has reported a Q1 2021 net sales drop of 1.8 percent, falling to $445 million from $453 million year on year. The beauty company also reported the renaming and expansion of its restructuring plan to the Revlon Global Growth Accelerator (RGGA).  

THE DETAILS The company has announced new initiatives under the expanded program, which includes a ‘reinvestment strategy’ that aims to strengthen brands and drive long-term sustainable margin and revenue growth through ‘realized incremental productivity initiatives and enhanced capabilities.’

As per the Q1 results, both Elizabeth Arden and Fragrances reported double-digit net sales growth, while the penetration of e-commerce net sales increased to approximately 13 percent of net sales versus 12% of net sales in the prior-year period.  

Operating loss was $12.7 million in the first quarter of 2021, compared to a loss of $186.2 million during the prior-year period

THE WHY? According to a press release, the RGGA will ‘set the foundation for the Company’s long-term sustainable growth in both margin and revenue.’ 

The company will place a focus on its iconic brands – Revlon and Elizabeth Arden – in key markets and channels of US Mass, US Prestige, EMEA and China, and our global e-commerce business.

Debra Perelman, Revlon’s President and Chief Executive Officer, said, “Our businesses in the prestige channel, including Elizabeth Arden and Fragrances, experienced double-digit net sales growth in the first quarter, recovering more quickly than our businesses in the mass channel related to color cosmetics. As markets around the world continue to reopen and COVID-19 restrictions loosen, we are optimistic around the rebound of the mass channel, and particularly the Color Cosmetics category…

“Additionally, our Revlon Global Growth Accelerator Program, which we officially announced externally today, is a holistic transformation program that is designed to set the foundation for long-term, sustainable margin and revenue growth.”