Revlon President and CEO Fabian Garcia will step down after lower than two years within the place, the corporate stated Monday.
Board member Paul Meister was named government vice chairman and put in command of the corporate day-to-day operations on an interim foundation. Garcia, who’s stepping right down to “pursue different alternatives,” will keep on till the tip of February to help in a clean transition.
“This has been a tough yr for us balancing the profitable integration of Elizabeth Arden with the rise of e-commerce and specialty magnificence shops. We’re aggressively catching as much as that speedy transformation and I wish to thank Fabian for his management via this difficult and dynamic interval,” Revlon Chairman Ronald O. Perelman stated in a press release.
Garcia left a place at Colgate-Palmolive to take the helm at Revlon in April 2016. He oversaw an aggressive turnaround effort that sought to reorganize the cosmetics firm into 4 distinct divisions. His aim was to maneuver attain $5 billion in income inside 5 years, WWD reported.
However Revlon’s January acquisition of Elizabeth Arden, amid a tough yr for retail, proved difficult.
Weak income and sinking inventory worth had some collectors worrying that Revlon may switch property out of attain of its debt holders, mirroring actions taken by J.Crew last year. However CFO Chris Peterson debunked these rumors.
“Opposite to false rumors and pure hypothesis in public stories, a cloth asset switch shouldn’t be being thought of,” Peterson stated.
Alongside the announcement about Garcia, Revlon additionally reported preliminary fourth-quarter earnings and income. The corporate anticipates its fourth-quarter internet loss widened to about $60 million to $80 million, from a lack of $36.5 million within the year-ago quarter. Revlon expects to publish a internet lack of $165 million to $185 million for fiscal 2017, versus a lack of $21.9 million in 2016.
As for gross sales, Revlon estimates it is going to report $785 million in internet gross sales, beating analyst projections of $742 million.
Shares of Revlon surged 2.7 p.c on the information, earlier than settling barely up at about 1 p.c.