Beauty Sales: $1.9 billion
Key Personnel: Ronald O. Perelman, Revlon chairman, Fabian T. Garcia, president and chief executive officer; Corrado Brondi, president, CBBeauty; David Carvalho, senior vice president-Revlon Consumer International; John Collier, senior vice president, Revlon Consumer North America; Xavier Garijo, executive vice president operations & chief supply chain officer; Benjamin Karsch, executive vice president, chief marketing officer-Revlon Consumer Division; Sennen Pamich, executive vice president, global president-Revlon Professional Division.
Major Products/Brands: Color cosmetics, fragrance, skin care and hair care including Revlon, Revlon Professional, Almay, Mitchum, Revlon Colorsilk, Revlon Beauty Tools, Cutex, PureIce, SinfulColors, Charlie, CND, American Crew, Orofludo, Crème of Nature.
New Products: Love Is On fragrance, Revlonissimo Colorsmetique, Revlon Ultra HD Matte Lipcolor, American Crew Nine fragrance, Revlon Ultimate All-in-One Mascara, Revlon Colorstay Gel Envy nail polish, Eyes, Revlon Cheeks and Lips Palette, Revlon Colorstay 2-in-1 Compact Makeup and Concealer, Almay Age Essetials.
Comments: Founded more than 80 years ago by Charles Revson, Revlon began making real moves toward expansion and increasing profitability in 2015, when it adopted its Love Is On campaign, and launched its coordinated Love Is On fragrance, the company’s first perfume debut in more than a decade. The company also made a big commitment to philanthropic causes with its Love Is On Million Dollar Challenge for which it gained valuable social media headlines, while donating to women’s health causes. The online fundraising competition raised more than $4 million through donations.
Sales-wise, 2015 proved to be strong year for Revlon, with net sales of $1.9 billion, a 5.3% rise over the previous year. Sales in both the Consumer and Professional divisions showed increases, with the Consumer segment accounting for nearly 75%.
Consumer sales reached $1.4 billion, while Professional achieved $471 million.
Higher net sales of Revlon color cosmetics, Mitchum anti-perspirant deodorant products, Revlon ColorSilk hair color and Cutex nail products, partially offset lower net sales of Almay color cosmetics.
Similar to other companies in our Top 20, Color Cosmetics took the No. 1 spot, accounting for more than half (54%) of net sales. Beauty Care and Fragrance brought in 27%, and Hair Care contributed 19%. Geographically, the split was 55% U.S. and 45% international.
The big news of course came during the second quarter of 2016—that Revlon, Inc. would acquire Elizabeth Arden, Inc. for approximately $870 million. The merger is expected to create a beauty business with roughly $3 billion in annual sales, greatly raising its ranking among next year’s Top 20 global beauty companies. It also creates a platform across all major categories: mass, prestige, professional, color cosmetics, skin care and fragrance. And it also expands its global reach by targeting each other’s strong points: Arden’s strength in China, and Revlon’s stronger position in Latin America.
While Elizabeth Arden increased sales in its fiscal fourth quarter, it reported a slight loss for the year.
News of Note in 2016
In February, Revlon president and chief executive officer, Lorenzo Delpani, announced he was leaving the company for personal reasons.
In March, Fabian T. Garcia was elected as Revlon’s president and chief executive officer. He had previously served in a number of executive roles at the Colgate-Palmolive Company.
In July, Revlon announced its second Revlon Love Is On Million Dollar Challenge on CrowdRise.com, and said it will open up the competition to a much broader range of women’s health causes.
Soon after, the company announced they had hired Pamela Gill Alabaster to lead Revlon’s Global Corporate Communications and Corporate Social Responsibility function. Alabaster joined Revlon from The Estée Lauder Companies where she most recently served as VP global corporate responsibility. Prior to that, she had a 20-year career at L’Oréal, most recently as senior vice president corporate communications, public affairs & sustainable development.
For the first six months of 2016, Revlon reported a 3.5% increase of $32.5 million in net sales compared to the prior year period. The company said it is “on a growth trajectory to achieve its planned net sales and earnings for 2016, by building our strong brands, driving product innovations and continuing to grow our international business.”
Consumer segment net sales in the second quarter of 2016 increased by 3.9%, compared to the second quarter of 2015, driven in large part by higher net sales of Revlon color cosmetics, SinfulColors color cosmetics, Mitchum anti-perspirant deodorants, and Cutex nail products, partially offset by lower net sales of Almay color cosmetics.
Professional segment net sales in the second quarter of 2016 came in relatively flat, but Revlon Professional hair products and American Crew men’s grooming products were a bright spot, offsetting lower sales of CND nail products.