Revlon restructures
This article was originally published in The Rose Sheet
Executive Summary
Color cosmetics leader announces worldwide restructuring plan that will allow it to reduce annualized costs by roughly $30 mil., according to May 28 release. Rightsizing strategy includes planned elimination of roughly 400 positions - 325 current employees and 75 open slots. "This action, which we are implementing immediately, will enable us to become a stronger, more financially sound organization while staying true to our vision of providing glamour, excitement and innovation to consumers through high-quality products at affordable prices," President and CEO Alan T. Ennis says. Restructuring and related charges are expected to total $20 mil., $17 mil. of which will be recognized in the firm's fiscal 2009 second quarter. Excluding those charges, Revlon anticipates "significant negative impact on net sales and profitability in [its] second-quarter 2009 results" due to slowing category growth, inventory declines, and unfavorable foreign currency, among other factors
Color cosmetics leader announces worldwide restructuring plan that will allow it to reduce annualized costs by roughly $30 mil., according to May 28 release. Rightsizing strategy includes planned elimination of roughly 400 positions - 325 current employees and 75 open slots. "This action, which we are implementing immediately, will enable us to become a stronger, more financially sound organization while staying true to our vision of providing glamour, excitement and innovation to consumers through high-quality products at affordable prices," President and CEO Alan T. Ennis says. Restructuring and related charges are expected to total $20 mil., $17 mil. of which will be recognized in the firm's fiscal 2009 second quarter. Excluding those charges, Revlon anticipates "significant negative impact on net sales and profitability in [its] second-quarter 2009 results" due to slowing category growth, inventory declines, and unfavorable foreign currency, among other factors. |