Revlon, Inc. announced its financial results for the first quarter ended March 31, 2011. Net sales reached $333.2 million in the first quarter of 2011, compared to $305.5 million in the first quarter of 2010, an increase of 9.1%. Excluding the favorable impact of foreign currency fluctuations of $6.2 million, first quarter 2011 net sales increased 7.0%. Additionally, operating income was at $44.7 million in the first quarter of 2011 compared to $45.4 million in the first quarter of 2010.
Commenting on the announcement, Revlon president and CEO Alan T. Ennis said, "Our first quarter results demonstrate the continued execution of our business strategy and our focus on driving growth. Net sales increased 9% year-over-year; we delivered net sales growth in all regions; and we added the Sinful Colors brand to our portfolio in March 2011. We also sustained competitive operating margins while significantly increasing investment to support our brands. We remain focused on delivering on our strategic objective of profitably growing our business."
On March 17, 2011, the company acquired certain assets, including trademarks, other intellectual property, inventory, certain receivables and manufacturing equipment, related to Sinful Colors cosmetics, as well as other brands, which products are sold principally in the U.S. mass retail channel.
Revlon’s increased sales were primarily due to higher net sales of its Revlon color cosmetics, as well as Almay color cosmetics, fragrances and other beauty care products, which were partially offset by lower net sales of Revlon ColorSilk hair color.
In the U.S., net sales in the first quarter of 2011 were $186.2 million, an increase of $4.1 million, or 2.3%, compared to $182.1 million in the same period last year. The increase was driven primarily by higher net sales of Revlon and Almay color cosmetics, which were partially offset by lower net sales of Revlon ColorSilk hair color. Net sales of Revlon color cosmetics increased in part due to lower promotional allowances as compared to the first quarter of 2010.
In Asia-Pacific, net sales in the first quarter of 2011 were $53.1 million, an increase of $7.2 million, or 15.7%, compared to $45.9 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales increased $4.1 million, or 8.9%, primarily due to higher net sales of Revlon color cosmetics in China and certain distributor markets.
In Europe, the Middle East and Africa, net sales in the first quarter of 2011 were $49.7 million, an increase of $6.8 million, or 15.9%, compared to $42.9 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales increased $4.8 million, or 11.2%, primarily due to higher net sales of Revlon color cosmetics, Mitchum antiperspirant deodorant and fragrances in the U.K. and South Africa.
In Latin America, net sales in the first quarter of 2011 were $27 million, an increase of $7 million, or 35.0%, compared to $20 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales increased $6.9 million, or 34.5%, primarily due to higher net sales of Revlon color cosmetics, Almay color cosmetics, Revlon ColorSilk hair color and other beauty care products. Higher net sales in Venezuela, including the impact of higher selling prices given market conditions and inflation, accounted for approximately one-half of the $6.9 million net sales increase in the region.
In Canada, net sales in the first quarter of 2011 were $17.2 million, an increase of $2.6 million, or 17.8%, compared to $14.6 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales increased $1.6 million, or 11.0%, primarily due to higher net sales of Revlon color cosmetics.
For more on this financial report, visit Revlon's website.
