Revlon, Inc. announced net sales of $305.5 million for the first quarter of 2010, compared to $303.3 million in the first quarter of 2009. Excluding the favorable impact of foreign currency fluctuations of $9.0 million, first quarter 2010 net sales declined 2.2%. Operating income of $45.4 million compared to $31.6 million. Net income in the quarter was $2.2 million, or $0.04 per diluted share, compared to net income of $12.7 million, or $0.25 per diluted share, in the same 2009 period. Net income in the 2010 first quarter included $9.7 million of expenses associated with the March 2010 refinancing and a foreign currency loss of $2.8 million related to the re-measurement of Revlon Venezuela's balance sheet as a result of Venezuela's currency devaluation.
"We continued to execute our business strategy and delivered improved profitability and cash flow in the first quarter of 2010," said Alan T. Ennis, president and CEO, Revlon. "We remain focused on building our strong brands by launching and appropriately supporting innovative new products, such as Revlon PhotoReady makeup and Revlon ColorBurst lipstick. Also, we improved our capital structure by refinancing our term loan and revolving credit facilities."
The decline was driven primarily by lower net sales of Almay color cosmetics and Revlon beauty tools, due to the cycling of the 2009 launches of Almay Pure Blends and Revlon Pedi-Expert, respectively, partially offset by higher net sales of Revlon ColorSilk hair color and Revlon color cosmetics. Net sales of Revlon color cosmetics increased primarily due to lower promotional allowances and the benefit of new product launches in the U.S. during the first quarter of 2010 as compared to the first quarter of 2009. Net sales in the first quarter of 2009 benefited from higher pipeline shipments of second half 2009 new color cosmetics products in the United States.
For the full report, including a breakdown of performance by region, see the company's investor site.