Revlon Shares Plummet After Earnings Slide

By Tonya GarciaMarketsMarketWatch Pulse

Revlon Inc. shares plummeted 19.2% in Friday trading after the beauty company reported a year-over-year earnings slide and a pro forma sales decline in the first quarter. Net loss was $37.4 million, or 71 cents per share, compared with income of $11.0 million, or 21 cents per share, last year. The adjusted loss was 23 cents per share. Sales for the quarter were $594.9 million, up from $439.6 million. But on a pro forma basis, sales fell 5.8%. Revlon acquired Elizabeth Arden in September 2016, and expects $50 million to $60 million in synergies and cost reductions in 2017. It attributed the revenue decline to softening consumption in beauty categories across both mass retail and prestige channels, and fewer replenishment orders in the professional channel. "During the quarter and as widely reported, most of our U.S. retail partners experienced lesser foot traffic, store closures and shopper channel shifting to online and beauty specialty retailers," said Chief Executive Fabian Garcia on the earnings call, according to a FactSet transcript. "Although beauty remains a growth category in the U.S., where and how consumers shop for beauty is evolving." Revlon shares are down 43.6% for the past year while the S&P 500 index is up 16.6% for the period.

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