Revlon, Inc. said last week that its first quarter loss widened as it spent millions to improve in-store displays and other efforts aimed at increasing the effectiveness of its advertising and promotional spending.
The spending, expected to result in charges of up to $160 million, is part of a comprehensive growth plan underway at the cosmetics company. Other initiatives include discounting select products, price adjustments and strengthening the new product development process. During the quarter, the company said it incurred expenses of about $11 million associated with implementing the plan.
The company posted a net loss of $48.7 million, compared to $46.1 million one year ago. Net sales rose to $292 million from $275.4 million, driven by growth in both North American and international operations. The quarter ended March 31.
During the quarter, Revlon gained market share in color cosmetics from 22.4% last year to 23.2%, with both the Revlon and Almay brands contributing to the growth.
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