Revlon President and CEO Fabian Garcia will step down after less than two years in the position, the company said Monday.
Board member Paul Meister was named executive vice chairman and put in charge of the company day-to-day operations on an interim basis. Garcia, who is stepping down to “pursue other opportunities,” will stay on until the end of February to assist in a smooth transition.
“This has been a difficult year for us balancing the successful integration of Elizabeth Arden with the rise of e-commerce and specialty beauty stores. We are aggressively catching up to that rapid transformation and I want to thank Fabian for his leadership through this challenging and dynamic period,” Revlon Chairman Ronald O. Perelman said in a statement.
Garcia left a position at Colgate-Palmolive to take the helm at Revlon in April 2016. He oversaw an aggressive turnaround effort that sought to reorganize the cosmetics company into four distinct divisions. His goal was to move reach $5 billion in revenue within five years, WWD reported.
But Revlon’s January acquisition of Elizabeth Arden, amid a difficult year for retail, proved challenging.
Weak profits and sinking stock value had some creditors worrying that Revlon might transfer assets out of reach of its debt holders, mirroring actions taken by J.Crew last year. But CFO Chris Peterson debunked those rumors.
“Contrary to false rumors and pure speculation in public reports, a material asset transfer is not being considered,” Peterson said.
Alongside the announcement about Garcia, Revlon also reported preliminary fourth-quarter earnings and revenue. The company anticipates its fourth-quarter net loss widened to about $60 million to $80 million, from a loss of $36.5 million in the year-ago quarter. Revlon expects to post a net loss of $165 million to $185 million for fiscal 2017, versus a loss of $21.9 million in 2016.
As for sales, Revlon estimates it will report $785 million in net sales, beating analyst projections of $742 million.
Shares of Revlon surged 2.7 percent on the News, before settling slightly up at about 1 percent.
Source : CNBC