Revlon Sales Climb 1.5% on Consumer Business
18 Julio 2016 - 7:40PM
Noticias Dow Jones
Revlon Inc. said Monday that its net sales rose 1.5% during its
latest quarter according to preliminary data, driven by its
consumer segment performance in the international region.
The early release of information was part of the company's
disclosures as it raises financing for its recently announced $420
million acquisition of rival Elizabeth Arden, announced last month.
The deal would create a company with combined annual sales of
roughly $3 billion as well as help Revlon refinance its heavy debt
load.
Revlon reported Monday that during the quarter ended June 30,
sales rose 1.5% to about $489 million. Absent currency headwinds,
sales climbed 3.5%, the company said.
Revlon shares, which have slipped roughly 11% over the last
three months, closed at $33.09 on Monday and was inactive after
hours.
The company reported operating income of about $52 million for
the second quarter, down from $61 million during the same period
last year. Revlon is slated to discuss its quarterly results on a
conference called scheduled for July 29.
Both Revlon and Elizabeth Arden have struggled in recent years.
Revlon has been weighed down by its debt, while celebrity
fragrances, a key part of Elizabeth Arden's portfolio, have fallen
out of favor.
Revlon said it would pay $14 a share for Elizabeth Arden, a 50%
premium. The company will use $2.6 billion of new financing
commitments from Bank of America Merrill Lynch and Citigroup to
fund the purchase and to refinance Arden's existing debt, as well
as much of Revlon's $1.8 billion in long-term debt.
Revlon said it expects the deal to produce $140 million in
savings over three to five years. Revlon forecast its 2016 sales to
be between $2 billion and $2.1 billion, excluding the acquisition
and impact of currency fluctuations.
Elizabeth Arden, which was founded in 1910 in New York, sells
perfumes and cosmetics under its own brand, as well as making
fragrances for a roster of celebrity trademarks such as Justin
Bieber, Mariah Carey and Taylor Swift. The company's sales have
weakened in recent years and it hasn't produced an annual profit
since 2013.
Sharon Terlep contributed to this article.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
July 18, 2016 20:25 ET (00:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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