cut its revenue forecast for 2006 and postponed a stock sale, citing competition for two lines of skin cosmetics.
The company, which is controlled by Ron Perelman and has lost money in each of the last three years, "expects strong revenue growth in 2006, although this growth is now expected to be lower than previously planned," it said. A goal of raising operating margins to 12% by 2008 also won't be met, the company said.
Revlon also sees earnings before interest, taxes, depreciation and amortization that are at or below their level of 2005. The brunt of the EBITDA hit will occur in the second quarter, when analysts currently expect the company to lose 9 cents a share. Analysts are calling for a loss of 14 cents a share on revenue of $1.45 billion for 2006.
A $75 million stock sale that had been scheduled to close by the end of this month was pushed back to later this year or 2007. The company also said it will defer a decision on refinancing a credit facility that expires in 2009.
"The company indicated that its revised revenue outlook, while still strong, reflects less robust growth from Vital Radiance and Almay due to stepped-up competitive activity, as well as less effectiveness from certain of the Company's revenue-driving actions," Revlon said.
"The company indicated that it is continuing to take important and appropriate steps intended to create long-term value and build its brands, including continuing to invest in its brand initiatives, while continuing to take appropriate and aggressive actions to reduce costs," it said.
"Vital Radiance is a compelling consumer proposition and
Revlon will work with its retail partners to optimize the new brand's productivity and retail presentation, which could result in the reconfiguration or reduction of the Vital Radiance retail display space in certain retailers."