Revlon's fourth quarter 2020 net sales totaled $626.6 million, compared to $699.4 million during the prior-year period, a decline of 10.4%. Net sales for full-year 2020 were $1,904.3 million, compared to $2,419.6 million during the prior year, a decline of 21.3%.
During the fourth quarter, e-commerce net sales increased approximately 39% versus the prior-year period and represented approximately 20% of fourth quarter 2020 net sales, versus approximately 13% in the prior-year period.
Operating income was $28.4 million in the fourth quarter, compared to $76.7 million during the prior-year period. The lower operating income was driven primarily by the adverse impacts of the COVID-19 pandemic impact on net sales, sales mix and higher manufacturing overhead absorption costs along with costs associated with the company’s various debt refinancing activities.
Net loss was $233.8 million in the fourth quarter, compared to $25.8 million net income in the prior-year period. The adjusted net income was $32.7 million, compared to $23.6 million during the prior-year period.
The fourth quarter reported a gross profit of $366.8 million, compared to $397.9 million in the prior-year period, a 7.8% decline.
As of December 31, 2020, Revlon had total liquidity of $249.9 million.
Operating loss was $226.3 million in 2020, compared to $60.7 million of income during the prior year.
Net loss was $619.0 million in 2020, compared to a $157.7 million net loss in the prior year.
Gross profit was $1,043.8 million, compared to $1,367.4 million in the previous year.
Debra Perelman, Revlon's president and CEO, said: “In the fourth quarter of 2020, we continued to see positive developments tracing back to the transformational initiatives begun in the second half of 2018 to rationalize the business, capture our share of the e-commerce channel, and launch new products in the segments that will add the greatest value to the Company. While these initiatives, including the Revlon 2020 Restructuring Program, were designed with a long-term view of our business, they have also been essential in helping to mitigate the ongoing effects of COVID-19. The impact of our disciplined expense controls and cost cutting measures was reflected in our adjusted EBITDA margin, which improved approximately 200 basis points from last quarter. We also saw yet another sequential improvement in our net sales decline—continuing a trend from the prior two quarters."
She added, "We are seeing signs of broader positive momentum in the business, and with several major 2020 challenges behind us we believe we are well positioned to capture the reemerging opportunities in the beauty industry. We continue to execute against the key pillars of our strategy, including driving growth in our iconic brands of Revlon and Elizabeth Arden, key markets such as China, and accelerating our e-commerce business. This remained our focus throughout 2020 and we are committed to delivering against these plans in 2021."