The decline added to big losses for shareholders, with the stock down over 40% so far this year compared to a 10% increase for the broader market.
The August drop came following fiscal second-quarter earnings results that showed continued struggles for the beauty products giant. Organic revenue fell 5% and gross profit margin fell by over 3 percentage points to 62% of sales on weakness in the core U.S. selling market. Revlon generated an adjusted net loss of $24 million, compared to a gain of $13 million in the prior-year period.
In an early August press release, executives highlighted healthy demand in international markets as a key bright spot. "While our financial performance and sales results in the U.S. remained soft in a challenging retail environment," CEO Fabian Garcia said, "we are encouraged by the global growth of our iconic Revlon and Elizabeth Arden brands [and] our international sales which remain robust."
Garcia and his team are aiming to improve their growth pace with help from new advertising campaigns for the Revlon and Elizabeth Arden franchises. Other key initiatives include a relaunch of the Almay brand, an aggressive product release calendar, and continued focus on faster-growing international geographies. Given the slumping share price, investors aren't showing much confidence that these moves will bring a quick end to Revlon's sales and profit slumps.