Revlon reports 21% sales drop in 2020
NYC-based cosmetics conglomerate Revlon, Inc. announced a 21.3 percent revenue decline in 2020, as store closures related to the Covid-19 pandemic cut into the company’s sales.
For the year ended December 31, 2020, Revlon’s net sales totaled $1.9 billion for the year, compared to $2.4 billion during the prior year, reflecting an estimated $505 million in negative impacts resulting from the Covid-19 pandemic.
Revlon’s annual net loss widened to $619 million in 2020, compared to a $157.7 million net loss in the prior year.
Likewise, fourth-quarter net sales also dropped 10.4 percent to $626.6 million, compared to $699.4 million during the prior-year period.
The company’s Revlon segment, which is made up of its flagship namesake brands, achieved fourth quarter sales of $205.6 million, down 15.3 percent, from the same period in the previous year, while the Elizabeth Arden segment saw its net sales jump 7.8 percent to $181.1 million.
The portfolio segment, which includes brands such as Almay, SinfulColors, American Crew, CND and Cutex, posted net sales of $103.2 million, down 22.8 percent year over year.
Fourth quarter sales in Revlon’s fragrance segment were $135.7 million, representing a 11.8 percent decrease when compared to the same period in the previous year. The segment's lower net sales were driven primarily by the continuing impacts from Covid-19, especially in the U.S. mass retail channel, and certain licensed fragrances.
By geography, Revlon saw a 10.8 percent revenue drop in North America, where sales totaled $115.4 million, while international sales fell 20.5 percent to $90.2 million in the fourth quarter of 2020.
"We are seeing signs of broader positive momentum in the business, and with several major 2020 challenges behind us we believe we are well positioned to capture the reemerging opportunities in the beauty industry,” said Debra Perelman, Revlon's president and CEO in a news statement.
“We continue to execute against the key pillars of our strategy, including driving growth in our iconic brands of Revlon and Elizabeth Arden, key markets such as China, and accelerating our e-commerce business. This remained our focus throughout 2020 and we are committed to delivering against these plans in 2021.”
Copyright © 2021 FashionNetwork.com All rights reserved.