Forbes  Aug 28  Comment 
Understanding the need to continuously shuffle its brands to suit the ever-changing beauty market, Revlon launched a Brand Renewal program in 2014, that will help it in introducing, retaining, or eliminating brands from its basket as per their...
SeekingAlpha  Jul 29  Comment 
Forbes  Jun 12  Comment 
Revlon, the mass market cosmetics manufacturer, delivered a healthy 2014 primarily after integrating The Colomer Group, into its operations. With the TCG consolidation, Revlon has diversified its product portfolio with the addition of Professional...
Forbes  May 14  Comment 
When Lorenzo Delpani took over as CEO of Revlon a year ago, he arrived looking at the business in a new way. The core of his thinking was to develop a strategy for value creation that applies to every member of the organization, requiring agencies...
Yahoo  Apr 15  Comment 
A successful sale would allow P&G to focus on more profitable consumer brands such as its Gillette razors, Tide detergent and Pampers disposable diapers. Henkel is interested in buying P&G's haircare business, which includes the Wella and Clairol...
Forbes  Apr 13  Comment 
This week beauty giants L'Oreal and Estee Lauder received the titles of being among the most popular cosmetics brands in two separate studies. In contrast, Avon Products witnessed brand value erosion in a study by Brand Finance, on account of its...
Forbes  Mar 16  Comment 
For Q4 2014, Revlon reported revenues of $501 million which was almost in line with its Q4 2013 pro forma adjusted revenues of $500.8 million. Revlon's full year 2014 revenues were $1.94 billion reflecting a 1.7% year on year growth as compared to...


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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