Revlon Is Gearing Up For A Bigger Presence In The Beauty Arena With The Elizabeth Arden Deal

August 1st, 2016 by Trefis Team
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Revlon

Revlon’s Q2 2016 results were released on July 29th. The biggest highlight for the company was the upcoming Elizabeth Arden acquisition (expected to be completed by end of 2016), which will make the combined entity one of the top 20 beauty companies in the world. Additionally, post the deal, the fragrance segment is expected to contribute almost 30% to Revlon’s category mix (up from the current 4%) and the resultant increase in Revlon’s global market share in the fragrance segment might increase the valuation of the company significantly. Currently, Revlon is also focusing on its innovation, and there’s an upgraded product lineup to be released in the second half of 2016. The company is giving special attention to its persistently underperforming brands such as CND and Almay, and aims to relaunch those brands keeping the consumer demographics and demands in mind.

Revlon’s consumption had grown by 3.9% year-to-date in the U.S. and it surpassed the growth rate of the mass color cosmetics market. Its Consumer division’s international business grew by ~13% Y-o-Y in Q2 owing to geographies such as Japan, Argentina, and the U.K. The Professional division’s international business grew by around 3% Y-o-Y during the same period.

Q22016

 

 

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Revlon