Net sales were up, but the total company reported a loss for Q3. “Reporting as a combined organization for the first time since completing the Elizabeth Arden acquisition, we are pleased to share that the total company has continued its growth trajectory through the third quarter, with reported net sales up 30.0% XFX, or up 2.5% on a pro forma, XFX basis,” Fabian Garcia, president and CEO of Revlon says in a company media release about the quarterly results.
The Elizabeth Arden deal has taken a fair bit of effort lately and will be getting significant attention at Revlon for some time. “During the third quarter we completed our acquisition of Elizabeth Arden and began to develop our new organizational structure that is designed to enable us to drive future global growth,” explains Garcia in the release.
“We are making good progress on integrating the Revlon and Elizabeth Arden organizations and we have confirmed our ability to deliver at least the $140 million of multi-year synergies and cost reduction estimates related to the transaction. We remain enthusiastic about the significant value creation opportunity presented by the combination of our companies and brands.”
Revlon’s net sales for the third quarter of 2016 were reported at $604.8m, that’s a 28.3% increase, according to the company statement. Pro Forma, net sales came in at $745.1m for the quarter, up 1%.
“All four of our reporting segments, Consumer, Professional, Elizabeth Arden and our Other segment, delivered XFX net sales growth in the quarter, with Elizabeth Arden and the Professional businesses realizing increases in both of the North America and International regions,” Garcia tells the press.
Revlon reported a total company net loss for the quarter of $4.7m and a $0.5m Pro Forma net loss. “Excluding the Non-Operating and Unusual Items, Pro Forma Adjusted net income was $15.8 million in the third quarter of 2016, a $21.8 million increase over the prior year quarter,” according to Revlon’s statement.
In the region, Revlon points to the effect of “softening market conditions” on both Revlon branded and Sinful Colors color cosmetics products. In contrast, professional product net sales were up in the North America region over 2%, thanks to the Elvis marketing campaign for the company’s American Crew grooming products.
The Elizabeth Arden segment did well also with a net sales lift of 2.4% regionally. That growth was “primarily driven by increased net sales of Elizabeth Arden color cosmetics, as well as higher net sales of owned and licensed fragrances attributable to growth in designer and heritage brands,” according to the company.