Revlon, Inc. has cut its financial outlook for 2004 and said it will obtain new rounds of financing to help reduce debt.
The company said it has revised downward its financial forecasts to about 3% from 8% to 9% citing slower sales in its key U.S. mass market categories, particularly color cosmetics. The company expects the color cosmetics category to grow 1% to 2% in 2004, compared with the original expectation of 4%. Demand for antiwrinkle creams and other skincare products has put pressure on the color cosmetics category, which includes blush, eyeshadow and lipstick.
The company plans to “right-size” its spending, including expenditures on brand support, to aggressively manage its costs in relation to the revised sales outlook.
“We went into 2004 expecting a more robust U.S. color cosmetics category than current trends would suggest,” said President and CEO Jack Stahl, in a statement. “We are acting responsibly by revising our spending plans to more appropriately reflect our current top-line trends and expectations.”
The company, whose brands include Almay, Ultimate and Charlie, also said it would obtain $910 million in new financing to restructure debt.
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