BEAUTY REPORT: REVLON
Revlon repositions EA to secure future beauty category benefits
Over twenty months have passed since beauty house Revlon closed its $870m deal for Elizabeth Arden and the brand is embarking on a journey to reinvest in its heritage and personal identity. Jessica Mason discovers where its focus within travel retail lies for the future.
Revlon has since reorganised
itself into four areas: Revlon and Elizabeth Arden within their own segments, fragrances as another and the remaining brands within the ‘Portfolio division’. However, it is the Elizabeth Arden brand that has emerged as the core strength behind Revlon. Net sales at Revlon totalled
Above: The exclusive Travel Collection.
R
evlon has journeyed a challenging path for any cosmetics and skincare
company. But the firm, which possesess both stature and brand strength, has addressed a great many challenges over the past year despite any fiscal exertions. With its eyes looking firmly
towards the future, Revlon has now set its sights on adapting and meeting the myriad needs of beauty consumers all over the world. In travel retail, the company
is striding out to reiterate how it understands the requirements of the channel. Products have new standout appeal and the introduction of packaging specially adapted to suit people on the move illustrates a new metamorphic stage for the brand owner; it wants to be more than the sum of its parts.
“Revlon is in an evolutionary time. We’re changing. We are becoming a much bolder organisation.”
Mary Beth Mazzotta, Vice President Brand Marketing Global Travel Retail, Revlon
48 TRBUSINESS As such, it is becoming more
participatory in the discussions and stories surrounding today’s consumer; adversity has made it braver in approach, more in touch and more consumer-centric. Mary Beth Mazzotta, Vice
President Brand Marketing Global Travel Retail, Revlon tells TRBusiness: “Revlon is in an evolutionary time.
We’re changing. We are becoming a much bolder organisation.”
Venturing into the unknown Back in 2016, Revlon agreed the acquisition of Elizabeth Arden for $870m, which reportedly valued the company at $14 a share. Its union was a time to rejoice, but also the beginning of a changing landscape for the beauty category as a whole. Restructuring occurred in the background of the deal and what lay ahead was, in many ways, a step into the unknown. “Singapore 2017 [TFWA Asia Pacific
Exhibition and Conference] was the first time we [Revlon and Elizabeth Arden] were together. We were just three months old and had both brands together. Now we have a year under our belt and have initiated a lot of new changes,” explains Mazzotta.
$560.7m in the first quarter of 2018, compared to $594.9m year- on-year. Net sales declines in the Revlon portfolio and fragrances segment were partially offset by net sales growth within the Elizabeth Arden segment. Operating losses reached $61.7m
in the first quarter of 2018, compared to $43.1m in the prior-year period. This was driven by a decline in net sales and higher selling, and general and administrative expenses linked to increased brand support, partially offset by lower acquisition and integration costs. “While our international sales
remain strong, we are aggressively driving change and innovation in our brands, products and sales processes to meet these challenges head on,” comments Paul Meister, Executive Vice Chairman of the Board. “We are seeing significantly
accelerated sales growth across all our digital platforms, positive consumer responses to our new brand campaigns, and are confident in the future.” Internationally, Elizabeth Arden
net sales increased by 23.5% to $76.8m in the first quarter of 2018 compared to the prior-year period, primarily driven by higher net sales of Elizabeth Arden-branded products within travel retail channels and in China. Mirroring the structural and
managerial changes within the company, the brands also received a
JUNE 2018
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