Revlon CEO Fabian Garcia steps down
Garcia, who is departing to “pursue other opportunities” according to a news statement from Revlon, will hand his duties to Paul Meister, currently a member of Revlon’s Board of Directors, in the interim. Meister will become Executive Vice Chairman of the Board, overseeing day-to-day operations, while Garcia will assist with the transition through to the end of February.
Garcia joined Revlon as president and CEO in April 2016, leaving a position at Colgate-Palmolive. During his time at Revlon, he oversaw an aggressive turnaround effort, including the acquisition of Elizabeth Arden.
“This has been a difficult year for us balancing the successful integration of Elizabeth Arden with the rise of e-commerce and specialty beauty stores. We are aggressively catching up to that rapid transformation and I want to thank Fabian for his leadership through this challenging and dynamic period,” said Ronald O. Perelman, Chairman of the Revlon Board of Directors.
His departure comes as Revlon announced its preliminarily financial results on Monday for the fiscal year and fourth quarter ended December 31, citing a notable net loss for the year.
The cosmetics company expects full year 2017 net sales to be approximately $2.7 billion, compared to $2.3 billion in 2016. Net loss is estimated to be in the range of approximately $165 million to $185 million, compared to $21.9 million in 2016.
Fourth quarter sales are expected to be $785 million, compared to $801 million in the fourth quarter of 2016. Net loss for the quarter is in a range of approximately $60 million to $80 million, compared to $36.5 million in the fourth quarter of 2016.
“Although we still have continuing improvements to make, we’re encouraged by our fourth quarter results, which represent a sequential improvement from the first nine months of the year. Our liquidity position has strengthened, and Revlon color cosmetics returned to growth in North America,” said Chris Peterson, Revlon’s Chief Operating Officer, Operations and Chief Financial Officer.
“The sector is experiencing a profound shift, but we’re gaining momentum on our strategy to respond to the accelerating pace of innovation and increasing migration to digitally-focused consumer engagement. We’re also pleased with our continued growth in e-commerce and look forward to expanding our share of this important category.”
Peterson added, “Contrary to false rumors and pure speculation in public reports, a material asset transfer is not being considered.”
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