To Save $11M Annually, Revlon to Exit China

Features Reuters

Reuters

(Reuters)

Cosmetics maker Revlon Inc, known for its Almay and Sinful Colors brands, said it would exit its China operations as part of a restructuring that would save about $11 million annually.

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Sales from China, which had declined in 2012, accounted for about 2 percent of Revlon's total net sales. The company posted total net sales of $1.43 billion in 2012.

Revlon said it would also cut 1,100 positions, primarily in China, which include 940 beauty advisors retained through a third-party agency.

The company said it expects to incur about $22 million of pretax restructuring and related charges. About $10 million of the charges will be employee-related costs, with the rest from sales markdowns and inventory write-offs.

Revlon, owned by buyout titan Ronald Perelman, said it recorded $20.9 million of the charges in December 2013, with the rest expected during 2014.

The company said about $8 million of the annual savings are expected to benefit 2014 results.

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Revlon named JPMorgan Chase & Co veteran Larry Alletto as chief financial officer in October.

Revlon shares have risen about 69 percent this year to their Monday close of $24.56 on the New York Stock Exchange.