19. Revlon
New York, NY
www.revlon.com
Beauty sales: $1.3 billion

Key Personnel:

Ronald O. Perelman, chairman; David L. Kennedy, president and chief executive officer; Alan T. Ennis, executive vice president and chief financial officer; Carl Kooyoomjian, executive vice president, technical affairs and worldwide operations; Robert K. Kretzman, executive vice president, human resources, chief legal officer and general counsel; Karl Obrecht, executive vice president, North American sales; Chris Elshaw, senior vice president, managing director, Europe; Arthur Franson, senior vice president, worldwide manufacturing; Graeme Howard, senior vice president, managing director, Asia Pacific; Edward A. Mammone, senior vice president, corporate controller and chief accounting officer; Abbe F. Goldstein, senior vice president, investor relations and corporate communications; Neil Scancarella, executive vice president and chief science officer; Mark M. Sexton, senior vice president and general tax counsel; Simon Worraker, senior vice president, managing director, Latin America.

Products/Brands:

Cosmetics, skin care, hair care and fragrances sold under such brand names as Revlon, ColorStay, New Complexion, Revlon Age Defying, Almay, Ultima and Charlie.

New Products:

3D Extreme mascara, Revlon Renewist Lipcolor, Make Up Eraser Pen, Age Defying Precise Wrinkle Eraser with Botafirm, Super Lustrous Shiny Sheers, Luxurious Color eyeliner, ColorStay Soft & Smooth Lipcolor, ColorStay Lipliner, ColorStay 12 Hour Eye Shadow Quad, Flair fragrance, Limited Edition Collection (eye, cheek, nail and lip color).

Comments:

Sales were flat last year, but net losses tripled. In the U.S., net sales for the year declined by 3% to $764.9 million, versus $788.3 million in 2005. This drop was due to the discontinuance, in September 2006, of Vital Radiance, which launched in 2005, partially offset by higher net sales of Revlon and Almay color cosmetics and beauty care products. For the full year 2006, according to ACNielsen, the U.S. color cosmetics category increased 4.2%, but Revlon’s share of the category fell 0.1% to 21.5%, due to a 1.2% decline in share for the flagship Revlon brand.

There was a bit of good news, however. Revlon’s share of the hair care color market rose 0.7% to 9.2%. International sales increased 4.1% to $566.5 million, driven primarily by growth in Europe and Latin America.

In 2007, Revlon introduced Flair, its new fragrance for women; its launch was postponed from 2006 in an attempt to cut costs.

The company is focusing on building and leveraging its strong brands, strengthening business and improving operating margin and cash flow. In addition to promoting Revlon and Almay brand color cosmetics, the company also intends to use the brand names to grow other beauty care categories such as women’s hair color, fragrances and deodorants. To strengthen international business, Revlon plans to rely on its U.S.-based approach.

Revlon reported first half results for 2007 of $678 million, up 4.8% over the same period last year. As in the previous year, the U.S. showed larger growth than international markets where most of the growth was attributed to Europe and Asia Pacific and Africa. U.S. sales increased 5.1% to $398 million and international sales increased 4.5% to $280 million.

Net sales in the second quarter of 2007 rose 8.8% to $349.2 million. Excluding foreign currency fluctuations, net sales in the second quarter increased 7.5% over the previous year. Second quarter 2006 sales fell $14 million after the company pulled Vital Radiance off the market. In the U.S., second quarter sales increased 13.4% to $204.2 million. Internationally, second quarter sales increased 2.7% to $145 million.