Revlon posts 2Q sales increase
NEW YORK Revlon announced on Thursday a 6 percent boost in preliminary second-quarter sales in the United States due largely to new product launches.
Preliminary sales for the second quarter in the United States totaled $215 million, up 6 percent compared with $204.2 million in the year-ago period.
Total net sales during the quarter rose 8 percent to about $375 million compared with sales of $349.2 million. Excluding the favorable impact of foreign currency fluctuations, total net sales in the quarter rose about 6 percent versus the year-ago period.
Operating income was about $60 million in the quarter versus $16.9 million in the year-ago period. Net income totaled roughly $20 million, or 4 cents per share, compared with a net loss of $11.3 million, or 2 cents per share, in the year-ago period.
Revlon noted that its Revlon brand maintained an approximate 13 percent dollar share during the quarter, in line with its quarterly performance since the fourth quarter of 2006.
In the United States, Revlon brand mass retail share in June 2008 was 14 percent, up 0.5 points compared with June 2007 and up 1.5 points compared with May 2008. As of June 2008, product launches in the first half were substantially in full distribution. Two products from this launch, Revlon Custom Creations foundation and Revlon ColorStay Mineral foundation continue to be ranked in the ACNielsen top 10 new products (by retail dollar sales) in the latest available data, according to the beauty company.
Almay continued to maintain an approximate 6 percent dollar share during the second quarter, in line with its quarterly performance since the fourth quarter of 2006. The growth was driven primarily by Almay TLC Foundation and Almay Smart Shade Blush and Bronzer, which were launched in the first half of 2008 and second half of 2007, respectively.
“We have demonstrated continued progress in the first half of the year and are realizing the benefits of executing our strategy. We believe that our focus on the key drivers, including: innovation, high-quality, consumer-preferred new products; effective, integrated brand communication; competitive levels of advertising and promotion; and superb execution with our retail partners should continue to generate sustainable, profitable sales growth and positive free cash flow,” stated David Kennedy, Revlon president and chief executive officer.