Revlon has the look of a leader in the US mass-market cosmetics business, alongside L'Oréal's Maybelline and Procter & Gamble's Cover Girl. Aside from its Almay and Revlon brands of makeup and beauty tools, the company makes Revlon ColorSilk hair color, Mitchum antiperspirants and deodorants, Charlie and Jean Naté fragrances, and Ultima II and Gatineau skincare products. Its beauty aids are distributed in more than 150 countries, though the US is its largest market, generating more than half of sales. Revlon products are primarily sold by mass merchandisers and drugstores such as CVS, Target, Shoppers Drug Mart, A.S. Watson, Boots, and Wal-Mart. Charles Revson founded Revlon in 1931.
The US is Revlon's largest market, accounting for about 55% of sales. The cosmetics maker also has operations in more than a dozen foreign countries and enjoys a global reach and leading positions in several product categories in Australia, Spain, Italy, Mexico, Canada, the UK, and South Africa.
Revlon is one of the world's top cosmetics makers across the mass retail channel, known for its color cosmetics in the face, lip, eye, and nail categories, as well as women's hair color and beauty tools. It has built a big business selling cosmetics and beauty products in the US to mass-market retailers and chain drug and food stores, collectively known as the mass retail channel.
It operates across two segments: Consumer (74% of net sales) and Professional (26%). Consumer consists of Revlon color cosmetics, Almay color cosmetics, SinfulColors color cosmetics, Pure Ice color cosmetics, Revlon ColorSilk hair color, Revlon Beauty Tools, Charlie fragrances, and Mitchum anti-perspirant deodorants.
Its Professional segment was formed upon its 2013 acquisition of Colomer. Professional now consists of Revlon Professional in hair color and hair care; CND-branded products in nail polishes and nail enhancements; and American Crew in men’s grooming products.
Sales and Marketing
The beauty giant spends heavily to promote its products in the hotly-competitive beauty market. Revlon reported advertising expenses, including TV, print, and digital ads, and in-store promotional displays, of $383 million in 2014, up from $279 million in 2013.
The mass-market cosmetic company's largest customer is Wal-Mart, which accounted for about 16% of its total sales in 2014.
Revlon posted unprecedented growth in 2014, with revenues surging from $1.49 billion in 2013 to peak at a record-shattering $1.94 million in 2014. The historic growth was primarily due to its 2013 acquisition of Colomer; as a result, Revlon's newly formed Professional segment saw its sales skyrocket by over 400% during 2014.
After posting a net loss of $6 million in 2013, the company recorded $41 million in positive income for 2014. Revlon has also achieved steady operating cash flow growth the last four years.
Mergers and Acquisitions
In 2016 Revlon agreed to acquire Elizabeth Arden for more than $419 million in cash. Upon approval of the merger, the combined company is in a good position to expand its global presence into additional markets, according to those close to the deal. Expected to close by the end of 2016, the deal is valued at $870 million, including debt.