Revlon Income Up in Q2 2010

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Revlon posted second quarter net sales of $327.7 million, up from $321.8 million in the second quarter 2009. Operating income reached $47.3 million, compared to $26.6 million in the second quarter 2009.

"We continue to execute our business strategy with a keen focus on building our strong brands and further developing our organizational capability globally," said Alan T. Ennis, president and CEO, Revlon. "A key driver of our business is launching innovative, high quality consumer-preferred products to the global marketplace. During the quarter, we introduced Revlon Grow Luscious) mascara, Revlon Just Bitten lipstain + balm and Almay One Coat Dial Up mascara. Additionally, during the quarter, we signed one of Hollywood's hottest stars, Kate Hudson, as the newest global brand ambassador for our Almay brand. The economic environment remains challenging and we continue to manage our resources carefully, with a focus on the long-term, profitable growth of our brands."

The increase in net sales was driven by higher net sales of Revlon color cosmetics and Revlon ColorSilk, partially offset by lower net sales of Almay color cosmetics and Mitchum anti-perspirant deodorant.

As previously disclosed, effective for periods beginning January 1, 2010, the Company is reporting Canada separately and is reporting South Africa as part of the Europe, Middle East and Africa region. As a result, prior year quarterly and year to date amounts have been reclassified to conform to this presentation.

In the U.S, net sales in the second quarter of 2010 were $179.3 million, a decrease of $6.9 million, or 3.7%, compared to $186.2 million in the same period last year. The decrease was primarily driven by lower net sales of Almay color cosmetics due to the cycling of the 2009 launch of Almay Pure Blends, as well as lower net sales of Revlon beauty tools and Mitchum antiperspirant deodorant, partially offset by higher net sales of Revlon color cosmetics.

In Asia-Pacific, net sales in the second quarter of 2010 were $48.7 million, an increase of $3.2 million or 7.0%, compared to $45.5 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales were essentially flat year-over-year. Lower net sales of Revlon color cosmetics in Australia were offset by higher net sales of Revlon color cosmetics throughout the rest of the region.

In Europe, Middle East and Africa, net sales in the second quarter of 2010 were $50.2 million, an increase of $4.6 million or 10.1%, compared to $45.6 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales increased $3.3 million, or 7.2%. The increase was primarily due to higher net sales of Revlon color cosmetics and fragrances in South Africa and higher net sales in certain distributor markets.

In Latin America, net sales in the second quarter of 2010 were $28.7 million, an increase of $1.5 million or 5.5%, compared to $27.2 million in the same period last year. Excluding the unfavorable impact of foreign currency fluctuations (including the unfavorable impact of the January 2010 devaluation of Venezuela's local currency relative to the U.S. dollar), net sales in Latin America increased $9.1 million, or 33.5%. The increase was primarily due to higher net sales of Revlon ColorSilk hair color, Revlon color cosmetics and other beauty care products in Venezuela and certain distributor markets. Higher selling prices in Venezuela, reflecting market conditions and inflation, accounted for approximately half of the $9.1 million net sales increase in the region.

In Canada, net sales in the second quarter of 2010 were $20.8 million, an increase of $3.5 million or 20.2%, compared to $17.3 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales increased $1.3 million, or 7.5%. The increase was primarily due to higher net sales of Revlon color cosmetics.