Revlon reports Q2, promises to meet 2016 goals
Revlon reports weak second quarter results but promises to stay on track for its 2016 goals.
The company recently acquired Elizabeth Arden and points to that acquisition as a source of weak performance in Q2. Revlon Executive Vice President and Chief Financial Officer, Juan Figuereo commented on the effect of the Elizabeth Arden transaction this quarter.
Figuereo said, “Regarding the funding for the Elizabeth Arden acquisition, the Company received a very strong and positive reaction from the debt markets, and has secured total financing commitments of approximately $2.7 billion, with favorable terms. We continue to expect the deal to close by the end of 2016, subject to regulatory approval and customary closing conditions.”
Revlon reported adjusted quarterly earnings down 1.1% over last year's Q2, and total net income fell $14.3 million over LY Q2. The company points to the decrease being driven by foreign currency losses on intercompany loans during the quarter.
Revlon President and Chief Executive Officer, Fabian Garcia, said “We ended the quarter on a strong trajectory with net sales growth up 3.5%, adjusted for foreign currency. Growth was driven by product innovation and strong performance by established brands in both the Consumer and Professional segments and in International territories."
Despite the adjusted earnings being affected by foreign currency losses, Garcia said, "Among other growth drivers, we are delighted by the continued strength of Revlon’s flagship brand which has posted year-to-date consumption growth of 3.9%, outperforming the color cosmetic mass category.”
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