Revlon Records Q3 2011

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Revlon, Inc. announced results for the third quarter ended Sept. 30, 2011. Third quarter 2011 results compared to third quarter 2010 saw net sales of $337.2 million compared to $319.0 million, an increase of 5.7%. Excluding favorable foreign currency fluctuations of $6.8 million, third quarter 2011 net sales increased 3.6%. The increase was primarily driven by the inclusion of the net sales of Sinful Colors and higher net sales of Revlon color cosmetics and Revlon ColorSilk hair color, partially offset by lower net sales in Venezuela due to the June 2011 fire at the company's local facility.

"In the third quarter, we continued to execute our strategy as we grew net sales by 3.6%, maintained competitive operating income margins, and generated positive free cash flow," said Revlon president and CEO Alan T. Ennis. "From a marketplace perspective, our continued emphasis on innovation, effective brand communication and strong in-store execution positively impacted our performance. During the quarter, two of Hollywood's most sought-after actresses, Emma Stone and Olivia Wilde, joined us as global brand ambassadors for our Revlon brand. We believe that our year-to-date performance in 2011 reflects the effectiveness of our strategy. While we remain focused on delivering profitable net sales growth, we are keenly aware of the global economic environment and we continue to manage our resources carefully, with a balanced perspective on long-term growth."

In the U.S., net sales in the third quarter of 2011 were $184.7 million, an increase of $18.0 million, or 10.8%, compared to $166.7 million in the same period last year. The increase was primarily driven by the inclusion of the net sales of Sinful Colors and higher net sales of Revlon color cosmetics and Revlon ColorSilk hair color.

In Asia Pacific, net sales in the third quarter of 2011 were $58 million, an increase of $3.5 million, or 6.4%, compared to $54.5 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales decreased $1.3 million, or 2.4%, primarily due to lower net sales of Revlon color cosmetics in Japan and Australia, partially offset by higher net sales of Revlon color cosmetics in China.

In Europe, Middle East and Africa, net sales in the third quarter of 2011 were $51.1 million, essentially unchanged year-over-year. Excluding the favorable impact of foreign currency fluctuations, net sales decreased $1.4 million, or 2.8%, primarily due to lower net sales of fragrances throughout most of the region.

In Latin America, net sales in the third quarter of 2011 were $25.6 million, a decrease of $3.7 million, or 12.6%, compared to $29.3 million in the same period last year. Excluding the unfavorable impact of foreign currency fluctuations, net sales in Latin America decreased $2.8 million, or 9.6%. The decrease was primarily due to lower net sales in Venezuela where the company has not fully resumed business since the June 2011 fire. Excluding Venezuela, net sales in Latin America increased as compared to the same period last year, primarily due to higher net sales of Revlon color cosmetics throughout the region and higher net sales of other beauty care products in Argentina.

In Canada, net sales in the third quarter of 2011 were $17.8 million, essentially unchanged year-over-year. Excluding the favorable impact of foreign currency fluctuations, net sales decreased $1.1 million, or 6.1%, primarily due to lower net sales of Almay color cosmetics.

The company continues to execute its five-part business strategy of build its strong brands, develop its organizational capability, driving the company to act globally, increasing its operating profit and cash flow, and improving its capital structure.

For more on Revlon’s third quarter 2011 financial results, as well as its first nine months 2011 results, visit the company's website.

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