Cosmetics and personal care products maker Revlon, Inc. (REV) on Thursday announced preliminary second-quarter results, reporting a profit compared to a loss last year, driven by 8% sales growth.
The New York-based company's net income was about $20 million, or $0.04 per share, compared with a net loss of $11.3 million, or $0.02 per share, a year ago. Analysts forecast a loss of $0.02 per share for the quarter. For the recent first quarter, the company reported a net loss of $2.5 million or breakeven per share.
Operating income rose to about $60 million from $16.9 million in the prior-year quarter. Adjusted EBITDA for the quarter was approximately $80 million, up from $42 million last year.
Revlon's quarterly net sales totaled about $375 million, down from $349.2 million in the second quarter of 2007. Excluding the favorable impact of foreign currency fluctuations, net sales increased approximately 6% from the previous year. For the preceding quarter, the company's net sales were $320.4 million.
Revlon's U.S. sales were approximately $215 million, up 6% from $204.2 million in the same quarter last year, driven by higher shipments of Revlon color cosmetics, largely due to new product launches in 2008, including initial shipments of more extensive second half 2008 new product lineup.
International operations generated net sales of nearly $160 million, up 10% from the previous year's $145 million. Excluding the favorable impact of foreign currency fluctuations, net sales increased 5%, reflecting higher shipments of Revlon color cosmetics products launched in 2008. Each of the company's international regions, namely, Asia Pacific, Europe, and Latin America, experienced net sales growth and margin expansion in the quarter.
The company's second-quarter results are scheduled to be announced on July 31.
Citing marketing information firm ACNielsen, Revlon said that second-quarter color cosmetics category grew 4.4 percentage points over last year in terms of U.S. mass retail share performance. In the U.S., Revlon brand mass retail share was 14% in June, up by 0.5 points compared to June 2007 and up by 1.5 points compared to May 2008, reflecting new product performance, effective brand communication and effective brand support.
The company also said that Almay Brand Color Cosmetics continued to maintain an approximate 6% dollar share in the quarter, in line with its quarterly performance since the fourth quarter of 2006. Retail dollar sales of Revlon beauty tools, as measured by ACNielsen, grew at approximately 2% in the second quarter 2008.
Going forward, Revlon expects that the full year impact of the sale of its Mexico facility will be approximately $4 million, after recording restructuring and other related charges in the second half of the year.
Among competitors, Avon Products Inc. (AVP) is set to announce its second-quarter results on July 30. Analysts expect the company to earn $0.47 per share in the quarter on revenues of $2.58 billion.
New York-based Estee Lauder Cos. Inc. (EL) is slated to report its fourth-quarter results on August 14. Analysts are of the view that the company will earn $0.56 per share in the quarter on revenues of $1.93 billion.
Another peer, Procter & Gamble Co.'s (PG) fourth-quarter results are expected to be released on August 5. The company on July 15 confirmed its earnings and sales growth outlook for the fourth quarter of fiscal 2007 - 2008. For the April - June quarter, the Cincinnati, Ohio-based company continues to expect earnings per share in the range of $0.76 to $0.78. The company still expects fourth-quarter sales growth of 8% to 10% and organic sales growth in line with its previous guidance. Analysts currently forecast earnings of $0.78 per share on revenues of $21.01 billion.
REV is trading at $0.75, up $0.06, on a volume of 244,239 shares.
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