Revlon blames another quarterly loss on poor US sales

The cosmetics giant and Elizabeth Arden owner has been hit by disappointing sales and profit losses this Q4 2017

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Revlon has announced another financial slump, due to disappointing Q4 sales in the US.

The cosmetics giant has reported a net loss of US$76.9m, following a $36.5m loss in the prior-year period.

Net sales were $786.6m, representing a 1.8% decrease.

Revlon’s consumer category saw a net sales loss of 3.2% to $355.7m, said to be hit by declining interest in Almay colour cosmetics.

Meanwhile, Revlon’s professional segment also followed a downward trend.

The 6.3% loss to $111.8m was attributed to a continued decline of American Crew men’s grooming products.

Elizabeth Arden’s profits increased by $48.7m, compared to $35.7m in Q4 2016. Along with a net sales boost of 2.3%, the brand was supported by international sales of its skin care and fragrance offering – offsetting disappointing celebrity fragrance sales.

A regional divide

Elizabeth Arden released a travel campaign last year

Across all of Revlon’s regional divisions, the US reported Q4 losses – notetably Revlon Professional dropped by 22.5% to $44.1m in the region.

Elizabeth Arden’s international sales were the success story of the last quarter, as the division saw an increase of 20.7% to $143.6m.

China, travel retail and higher net sales of heritage fragrances in Germany, South Africa and Australia also bolstered profits.

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