Revlon Targets Prestige Channel, Fragrance Growth With Elizabeth Arden Buy
This article was originally published in The Rose Sheet
Firm’s $870m acquisition of Elizabeth Arden is seen as “highly complementary,” bringing prestige skin care and scalable fragrance licenses to its existing business focused on mass and salon beauty and hair care. The deal also offers synergies and cost-reduction opportunities for both companies, which have struggled in recent years to rejuvenate their businesses.
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On the bright side in North America, the Revlon brand has reclaimed its lead in the US mass lip segment, and both Revlon and Almay are off to strong starts in the fourth quarter, company leadership says. The firm continues to build the international and digital sides of its business in search of sustainable growth outside of Elizabeth Arden.
The firm remains in brand- and digital-building mode, but it’s seeing marked progress while looking forward to planned H2 innovations and the impact of its recently introduced Flesh line of “inclusive” color cosmetics. Opportunity beckons in China, where Revlon’s second-quarter sales grew 46%.
The former Colgate-Palmolive exec served less than two years as CEO of Revlon, which continues to be plagued by declining sales and widening losses despite brand revival efforts and investments in e-commerce. There were bright spots in the fourth quarter, including renewed growth in the firm's US color cosmetics business.