What Was The Most Important Revenue Driver For Revlon Over The Last 3 Years?

Revlon (NYSE: REV), one of the world’s top cosmetics companies, operates under four global brand teams reporting its results under four segments: Revlon, Elizabeth Arden, Portfolio brands, and Fragrances. Of these 4 segments, the Elizabeth Arden segment has been the major contributor for Revlon’s top line in the last 3 years.

During the last few years, Revlon’s performance has been modest where net sales have been on and off positive driven by strong growth in the North America region with the majority of growth in its Elizabeth Arden segment. Revlon’s earnings growth has been a reflection of their continuous effort toward strengthening their business strategy and putting forth efforts to stabilize their business operations. We are seeing strong growth prospects in their strategic focus areas as they continue to work toward building momentum across their businesses.

In the previous annual earnings, Revlon’s Elizabeth Arden segment brand has performed well driven by new launches and a strong digital presence. Its net sales rose 116% to $952 Mn, primarily driven by higher net sales of Elizabeth Arden skin care products, including Ceramide and Prevage, principally in international markets. Revlon is on track to attain integration synergies of $190 million by 2020 in restructuring and related charges in connection with implementing actions under the Elizabeth Arden Integration Program in 2019.

Revlon has been very aggressive in digital and e-commerce initiatives by setting up a new team of digital professionals realizing the importance of digital progress and social media in a brand’s reach and popularity among its clientele.  Along with increasing ad investments, the company is also shifting most of its campaigns to the digital platform.  Recently, Revlon collaborated with a leading digital consultancy, Sapient Razorfish, to create a stronger digital presence. These factors are positively working in its favor as an increasing number of customers are buying beauty products online.

For 2019, Revlon plans to continue to focus on strengthening their brands and enhancing the avenues through which they communicate and connect with their consumers. They are focused on ensuring broad availability of their products where the consumer shops in both brick and mortar and online. With the appointment of Debra G. Perelman as their new CEO, Revlon is sure to get new energy and will advance on the path of  brand transformation and will come out stronger in the coming years.

We have created an interactive dashboard on Important Revenue Driver For Revlon Over The Last 3 Years that shows Revlon’s key revenue source and the past performance in the last 3 years.  With the initiatives adopted by Revlon’s top management for a brand makeover, the company is positive that the new changes will now steer Revlon toward higher growth. We believe that Revlon has the key advantages in terms of innovation, brand power, digital prowess, and the quality of its teams all over the world to continue to drive growth and hold on to its position in the Beauty market. 

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