The coronavirus has cut Revlon’s sales by 39 percent.
The beauty company said net sales slipped to $347.6 million in the second quarter, compared to $570.2 million in the prior-year period. Revlon said in a statement that it believed without the impacts of COVID-19, sales would have been flat year-over-year.
The company’s net loss widened during the quarter, to $126.8 million versus $63.7 million in the prior-year period.
Sales for the Revlon brand dropped from $135 million for the quarter, down 45 percent year-over-year. Elizabeth Arden sales were down 30 percent, to $81 million, and the portfolio segment dipped 24 percent, to $89 million. Fragrance was the hardest hit segment, with sales down 47 percent year-over-year to $43 million.
Executives told Wall Street during an earnings call Thursday that the company is “well positioned to capture” changes in consumer preferences due to COVID-19 because of its hair and nail portfolio.
E-commerce was a bright spot in the quarter. Sales were up 58 percent over the prior-year period, and represented about 18 percent of total quarter net sales, the company said. Elizabeth Arden’s web site doubled sales in the quarter, the company said. China also grew 56 percent in the quarter, thanks to online sales and Elizabeth Arden.
“Although our business faced significant headwinds in the second quarter of 2020 as a result of the ongoing global COVID-19 pandemic, we took aggressive steps to mitigate these effects, which enabled us to greatly reduce the pandemic’s impact to our profitability in the quarter,” Debbie Perelman, Revlon’s president and chief executive officer, said in a statement.
She noted that Revlon continues to work through its planned restructuring program, which includes “rightsizing our organization to drive improved profitability, cash flow and liquidity.” In April, Revlon instituted a series of furloughs, work week reductions and hiring freezes that Perelman said helped to reduce costs.
“While these were very difficult decisions to make, they were necessary to protect the business and our portability during this unpredictable time,” Perelman told Wall Street analysts on the company’s earnings call Thursday.
“We are managing the business to conserve cash and liquidity, as well as focusing on stabilizing the business, growing e-commerce and preparing the foundation for future growth,” Perelman said.
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