Revlon has released its financial results for Q2 2017.
According to the company, the reported net sales for the company as a whole saw a strong increase—due to the acquisition of Elizabeth Arden—but sales of individual segments decreased.
Net sales for Q2 2017 reached $645.7 million, an increase of 32.1% compared to $488.9 million during Q2 2016.
Net sales for Revlon's consumer segment reached $335.7 million, a decrease of 6.6% compared to $359.5 million during Q2 2016. The company attributed the decrease to soft core beauty category consumption in North America's mass retail channel, higher sales return accruals due to the impending relaunch of the Almay brand and a decline in SinfulColor sales when compared to the Kylie promotional line sold last year.
Net sales for Elizabeth Arden reached $199.2 million.
Net sales for Revlon's professional segment reached $105.4 million, a decrease of 14.5% compared to $123.3 million during Q2 2016. The company attributed the decrease to a decline in CND nail product sales and lower sales of American Crew grooming products.
Revlon's president and CEO, Fabian Garcia, said, "While our financial performance and sales results in the U.S. remained soft in a challenging retail environment, we are encouraged by the global growth of our iconic Revlon and Elizabeth Arden brands, our international sales which remain robust and the key strategic initiatives that we have implemented during the quarter, which we expect will drive sequential improvements in company performance."
He added, "Of note in this quarter, we secured incremental shelf space and distribution for the newly repositioned Almay, created new campaigns for Revlon and Elizabeth Arden, our two largest and most iconic brands,focused our global expansion on large and fast growing geographies, accelerated our innovation process and speed to consumer, working with strategic suppliers, developed a strong second half and 3-year new product pipeline, continued to make progress in our digital communications, engagement and e-commerce capabilities and delivered a total of $24 million in synergies in the first half of 2017, against the target of $190 million annualized by 2020, with $50-60 million anticipated in 2017.”
Garcia continued, “During the quarter we continued to take measures to enhance our digital capabilities and competitiveness, strengthened our brands and their global distribution and further refined our long-term strategy for profitable growth.”