Revlon Inc. announced its results for the quarter ended March 31, 2020.

Net sales were $453.0 million in the first quarter of 2020, compared to $553.2 million during the prior-year period, a decline of 18.1%.

Net sales include approximately $54 million of estimated negative impacts associated with COVID-19. Excluding the COVID-19 impacts, net sales on a constant currency basis declined 6.5%.

Operating loss increased to $186.2 million in the first quarter of 2020, compared to a $23.3 million operating loss during the prior-year period. The higher operating loss was driven primarily by $124.3 million of non-cash intangible impairment charges reflecting the financial impacts of COVID-19. 

Net loss increased to $213.9 million in the first quarter of 2020, versus a $75.1 million net loss in the prior-year period. On May 7, 2020 the company closed on a new $880 million term loan facility.

Debra Perelman, president and Chief Executive Officer, Revlon Inc., states: 

"Although our business was significantly impacted during the first quarter of 2020 by the ongoing global COVID-19 pandemic, we have taken aggressive steps to mitigate these effects and feel confident that we will emerge well positioned to continue our transformation and maintain our leadership position within the beauty category."

Perelman continues, "Beauty is a resilient industry and we are already seeing signs of a return to strong sales activity in China and other markets. Elizabeth Arden, e-commerce and our personal care products, including Revlon hair color, also maintained their strength despite the global closure of key markets."

She adds, "For the quarter, our e-commerce business grew approximately 47% and represented over 12% of our total net sales, almost doubling the scale of our e-commerce business since Q1 2019. With a streamlined operation, lower costs and a stronger balance sheet, we are confident that Revlon will be able to weather the pandemic crisis, continue to serve our consumers and customers and drive value for all our stakeholders."

Revlon Inc. operates in four reporting segments: Revlon; Elizabeth Arden; Portfolio; and Fragrances. See each below. 

Revlon 

Revlon segment net sales in the first quarter of 2020 were $181.8 million, a 26.5% (or 25.1% XFX) decrease compared to the prior-year period.

The segment's lower net sales were driven primarily by the global impacts associated with COVID-19, increased trade spend, and increased pipeline shipments to support in-store activity that occurred in the prior-year period.

Revlon segment profit in the first quarter of 2020 was $15.6 million, compared to $25.6 million in the prior-year period, driven primarily by the segment's lower net sales and lower gross profit margin.

Elizabeth Arden 

Elizabeth Arden segment net sales in the first quarter of 2020 were $95.2 million, a 14.5% (or 12.3% XFX) decrease compared to the prior-year period.

The decrease was driven by lower net sales of certain Elizabeth Arden-branded skin care products and color cosmetics and of certain Elizabeth Arden-branded fragrances due, in part, to the closure of department stores and travel retail outlets as a result of COVID-19. Results were partially offset by higher net sales of Ceramide skin care products internationally.

Elizabeth Arden segment profit in the first quarter of 2020 was $4.2 million, compared to $1.9 million in the prior-year period, primarily due to the segment's higher gross profit margin and lower brand support, partially offset by the lower segment net sales.

Portfolio Segment

The Portfolio segment, which includes Almay, SinfulColors, Mitchum, Creme of Nature and more, reports that its net sales of $110.0 million in the first quarter of 2020 decreased by 6.1% (or 4.4% XFX) compared to the prior-year period.

Results were driven primarily by the segment's lower net sales of Almay and SinfulColors color cosmetics, American Crew men's grooming products and CND nail products driven, due in part, by the closure of salons globally due to COVID-19.

Results were partially offset by higher net sales of Mitchum anti-perspirant deodorants and Cutex nail care products, primarily in North America.

Portfolio segment profit in the first quarter of 2020 improved to $7.2 million, compared to $4.5 million in the prior-year period, primarily as a result of lower brand support and higher gross profit margin, partially offset by the lower segment net sales.

Fragrances

The Fragrances segment, which includes Juicy Couture, Ed Hardy, Britney Spears, Elizabeth Taylor, John Varvatos and more, report that its net sales of $66.0 million in the first quarter of 2020 decreased by 14.6% (or 13.5% XFX) compared to the prior-year period.

The decrease was driven primarily by the impacts from COVID-19 and category declines in the U.S. mass channel.

Fragrances segment profit in the first quarter of 2020 was $1.4 million, compared to $6.8 million in the prior-year period, primarily as a result of lower segment net sales and higher brand support, partially offset by higher gross profit margin and lower distribution costs.