Revlon, Inc., the maker of Revlon and Almay cosmetics, has posted its first quarterly profit in more than six years. However, the company’s CEO acknowledged that it still has a lot of work to do.
Net income for the quarter was $46.2 million, compared with a loss of $12.6 million one year ago. Sales rose 2.7% to $378.3 million, versus $369 million. The company said that the growth was primarily driven by North America, reflecting strong sell-in of new product for 2005 and favorable foreign currency translation. The quarter ended Dec. 31, 2004.
Sales in North America grew 1% to $251 million, compared to $249 million. International sales grew 6% to $127 million, versus $120 million.
The company plans to increase its marketing spend, particularly in the earlier part of the year, behind key brands and new products, CEO Jack Stahl said in a statement.
For the full year, Revlon reported sales of $1.3 billion, essentially even with 2003 sales.
The color cosmetics category declined by 4.3% for the quarter and 2.5% for the full year, the company said, citing statistics from ACNielsen. Market share for the quarter for Revlon and Almay combined totaled 20.8%, compared to 21.2% in 2003.
“While we still have a lot of work to do, we are now a much stronger company, positioned to capitalize on the growth opportunities our strong brand portfolio and strengthened new product capability provide,” Stahl said.
In other news, Revlon has named Elizabeth Crystal as senior VP-customer marketing. She will lead the customer marketing team and have responsibility for creating and building customer strategies to leverage opportunities with the company’s retail partners.
Most recently, Crystal was VP-trade marketing for Buena Vista Home Entertainment, a division of the Walt Disney Co.
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