Forbes  Feb 1  Comment 
Revlon‘s largest controlling shareholder, Ron Perelman, has recently declared the intention to be searching for strategic alternatives for the beauty company. Of late, Revlon has been struggling to show financial growth. The company delivered a...
Motley Fool  Jan 15  Comment 
The stock market fell to its worst levels of 2016, but it couldn't hold these stocks back. Find out why.
New York Times  Jan 15  Comment 
Mr. Perelman’s investment firm said that it expected “to communicate with third parties” about a potential transaction, but has not formulated a plan.
Forbes  Dec 28  Comment 
Revlon didn?t witness much growth in 2015, primarily on account of currency headwinds. For the first nine months of 2015, Revlon?s net sales stood at $1.39 billion reflecting a 3% year-on-year decline. Revlon?s net income declined by 18% during...
Forbes  Nov 19  Comment 
From shifting focus to the growing professional segment, through the acquisition of The Colomer Group in mid-2013, to acquiring U.K. based fragrance company CB Beauty in 2015, Revlon is now focusing on diversifying its portfolio.The business of...
Forbes  Oct 27  Comment 
Revlon’s “LOVE IS ON Million Dollar Challenge” on Crowdrise surpassed its initial goal and is closing in on $1.5 million raised for women’s health related charities as of today. Celebrities such as Olivia Wilde, Christina Applegate, Emma...


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


  • 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.


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.


  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
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