QUOTE AND NEWS
New York Times  Nov 16  Comment 
The beauty brand will unveil a new theme, “Love is on,” on Tuesday as it seeks to burnish its slipping reputation in the industry.
The Hindu Business Line  Nov 13  Comment 
Revlon has launched a ColorStay Skinny™ Liquid Liner, which it claims is an all-day liquid liner with an ultra-fine tip that delivers intensely pigmented colour. It is available in three v...
The Hindu Business Line  Oct 9  Comment 
Wipe clean AllClean has launched a range of wipes to clean spectacles and touch screen surfaces. It is available in five colours. Price: ₹105 Read my lips Revlon has lau...
The Hindu Business Line  Aug 14  Comment 
Every customer who buys a Whirlpool appliance until September 15 will get an Arrow, Revlon or Year Bowl product as an Onam gift. The customers will also have a chance to win ten gr...
SeekingAlpha  Jul 30  Comment 
Revlon, Inc. (NYSE:REV) Q2 2014 Earnings Conference Call July 30, 2014, 09:30 AM ET Executives Jessica Graziano - Senior Vice President, Corporate Controller and Chief Accounting Officer Lorenzo Delpani - President and Chief...
Forbes  Jul 8  Comment 
For fiscal 2014, Revlon India expects to generate approximately (rupees ) 2.5 billion (~$42 million) in revenues. Although this is just 2% of overall revenues for Revlon, the professional products segment in India is expected to be worth 12...
SeekingAlpha  Jun 30  Comment 
By Bradd Kern: Previously, in November of 2013, we wrote a positive article about Revlon (REV). In that article, based on a conservative analysis, we valued REV at $35/share. Since November, in the notable absence of any sell-side coverage on...
The Hindu Business Line  Jun 16  Comment 
Taking an India-specific initiative, Modi Revlon is driving down prices by nearly 20 per cent by segmenting the mass market with a sub-brand – Street Wear Color Rich by Revlon. The new sub-...
TheStreet.com  May 13  Comment 
NEW YORK (TheStreet) -- Losses to Elizabeth Arden  stock following its third-quarter earnings report are dragging on fellow beauty companies Coty  and Revlon  over Tuesday's session. By late afternoon, Coty had fallen 2.3% to $15.47, while...




 

Revlon (NYSE:REV) makes color cosmetics, fragrances, and anti-perspirants. The company sells its products to consumers through drug stores and mass market retailers such as Wal-Mart Stores (WMT). Sales to Wal-Mart accounts for 23% of the company's total sales.[1] The company earned $1.3 billion in sales and $950K in net income in 2009.[2]

Revlon's color cosmetics market share has been dropping since 1998, and the company has had only a single profitable quarter in the last 8 years. The company's profitability began to suffer in the late 90s when overall industry growth in color cosmetics sales to mass retailers began to decline and increasing competition and drugstore consolidation resulted in reduced shelf space for Revlon's products.[3] Since then, Revlon has struggled to keep up with major competitors as its slowing sales and large debt burden have constricted its ability to spend on either R&D or an effective turnaround strategy.[4]

Company Overview

Brands[5]

  • Revlon: The Revlon brand is used in the cosmetics, beauty tools, and hair categories.
  • Almay: The Almay brand is used in the cosmetics and anti-perspirant categories.
  • Revlon ColorSilk: hair
  • Charlie: fragrance
  • Jean Nate: fragrance
  • Mitchum: anti-perspirants
  • Gatineau: skincare
  • Ultima II: skincare

Business Growth

FY 2009 (ended December 31, 2009)[2]

  • Net sales fell 3.7% to $1.29 billion. Sales in the US fell 4.4% while sales internationall fell by 2.9%. The company attributes the loss to the weak global economy.
  • Net income fell 15% to $950K.

Trends and Forces

L'Oreal Dwarfs Revlon's R&D Spending

Revlon competes with several larger competitors that are able to invest much larger amounts in research and development. Over the last decade, Revelon's history of losses have left it with insufficient cash flow to invest sufficiently in R&D. In 2009, the company spent $23.9 million, or 1.8% of net sales on R&D.[6]

Revlon is Dependent Upon Wal-Mart for a Large Portion of Sales

Revlon's principal customers include large mass volume retailers and chain drug stores, including retailers like Wal-Mart Stores (WMT), Target (TGT), Sears Holdings (SHLD), Walgreen Company (WAG), Rite Aid (RAD), CVS (CVS), and Longs Drug Stores (LDG) in the U.S., Shoppers DrugMart in Canada, A.S. Watson & Co. retail chains in Asia Pacific and Europe, and Boots in the United Kingdom. Wal-Mart accounts for approximately 34% of Revlon’s worldwide sales.[1] In addition, WalMart's mass purchases give it significant negotiating power with regards to shelf placement, shelf space, and purchase price.

Competition

Revlon's primary competitors are Procter & Gamble Company (PG), L'oreal (LRLCY), Avon Products (AVP), and Estee Lauder Companies (EL). Revlon is smaller than both L'oreal and PG in terms of revenues and resources. However, Revlon has a more focused product offering than these companies and when one considers only color cosmetics sales they are much more comparable. Revlon is the second largest color cosmetics company in the US. Competitors Estee Lauder and Avon get the majority of their revenue outside the US.

References

  1. 1.0 1.1 REV 2009 10-K "Customers" pg. 7-8
  2. 2.0 2.1 REV 2009 10-K "Selected Financial Data" pg. 28
  3. Funding Universe, Revlon
  4. Wrinkles Under the Surface at Revlon
  5. REV 2009 10-K "Products" pg. 4-6
  6. REV 2009 10-K "Research and Development" pg. F-12
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki