Revlon Inc., which owns the Revlon, Almay and Sinful beauty brands, is making changes in its business plan moving into 2014. Reportedly, the global beauty company is ceasing its operations in China. This will mean the elimination of approximately 1,100 positions, including 940 beauty advisor positions, says a Bloomberg article.
The exit of the Chinese market likely is a cost-saving measure for Revlon, which earlier in 2013 purchased The Colomer Group and named a new president and CEO, Lorenzo Delpani, in November 2013. According to a report from Reuters, “Sales from China, which had declined in 2012, accounted for about 2% of Revlon's total net sales. The company posted total net sales of $1.43 billion in 2012.” The company estimates about $8 million of the annual savings from the China exit are expected to benefit the company’s 2014 results.
An Associated Press via Yahoo! News story reported shares of Revlon Inc. are up $0.01 to $24.27 in morning trading on December 31, 2013.