Women’s Hair Color, Almay Boost Revlon U.S. Sales In ’07
This article was originally published in The Rose Sheet
Executive Summary
Revlon's increased shipments of beauty products, primarily women's hair color and Almay color cosmetics, drove a 5.1 percent increase in the firm's U.S. revenue in 2007 to $804.2 million, the company reported Feb. 28
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Revlon's increased shipments of beauty products, primarily women's hair color and Almay color cosmetics, drove a 5.1 percent increase in the firm's U.S. revenue in 2007 to $804.2 million, the company reported Feb. 28. The division's performance also benefited from a positive comparison with 2006, a year negatively impacted by the discontinuance of Vital Radiance . Sales growth was offset by lower shipments of Revlon color cosmetics, according to the firm. Revlon hair color for women gained 2 share points of the overall U.S. mass retail market for hair color in 2007, accounting for 11.2 percent dollar share, the firm said, quoting ACNielsen data. " Color Silk is the key brand, and it continues to grow in a category that is flat to down and has been flat to down," Revlon President and CEO David Kennedy said. The Revlon brand lost one share point during the year, commanding 13 percent of sales in the mass retail market for cosmetics. Almay was relatively flat year over year, claiming a 6 percent share. In the fourth quarter, Revlon's U.S. sales declined 5 percent to $215.8 million, hampered by higher sales returns expense and lower shipments in beauty care, the company said. Internationally, the firm's revenue grew 9.9 percent to $166.8 million for the quarter, and 5.2 percent to $595.9 million for the full year. Net sales for the year were $1.4 billion, representing growth of 5.2 percent; revenues grew 1 percent to $382.6 million in the fourth quarter. Revlon experienced a net loss of $16.1 million in 2007, versus a net loss of $251.3 million in 2006. Revlon expects to benefit in 2008 from strong product launches, including Color Stay Minerals long-wear minerals makeup collection, as well as Customs Creations Foundations, Almay TLC Foundation and Intense Eye Color Collection. The launches, part of an effort to strengthen Revlon and Almay, will be supported by competitive levels of advertising and promotions (1 (Also see "Revlon Climbing Back From Vital Radiance With New Releases For 2008" - HBW Insight, 19 Nov, 2007.), p. 5). - Eileen Francis ([email protected]) |