Revlon, the maker of cosmetics under its namesake and Almay brands, will cease operations in China and eliminate about 1,100 positions, including 940 beauty advisers, as it restructures its struggling business.
China makes up about 2 per cent of Revlon’s net sales, and the restructuring will result in about $22 million of pretax charges, the New York-based company said in a filing with the US Securities and Exchange Commission.
The changes are expected to reduce costs by about $11 million a year, Revlon said. The company, which posted profit declines in 2011 and 2012, has been making acquisitions and introducing new products as sales in some of its larger brands slow.
Earlier last year, it bought Colomer Group, giving it Creative Nail professional and Shellac nail polishes, as well as American Crew men’s haircare products. “Revlon was unable to gain scale and relevance in the important Chinese beauty market,” Connie Maneaty, an analyst at BMO Capital Markets in New York, wrote in a note. She rates the shares market perform, the equivalent of a hold.
Maybe consumers don’t like that Revlon tests on animals?