Revlon Narrows 3rd-Quarter Loss to $65.4M

NEW YORK – Cosmetics company Revlon Inc. on Thursday said its loss narrowed in the third quarter even as revenue fell, sending shares down 7.7 percent.

The company’s net loss was $65.4 million, or 18 cents per share, in the three months ended Sept. 30, compared with $91.6 million, or 25 cents per share, in the 2004 period. The year-ago loss reflected $59 million in costs related to Revlon’s refinancing. Sales fell almost 7 percent to $275.3 million.

Analysts expected Revlon to report a loss of 15 cents per share, according to Thomson Financial.

Shares of the company fell 22 cents to close at $2.65 on the New York Stock Exchange.

The company, which is revamping its Almay cosmetics line and launching a new brand for women over 50 years old, said the drop in revenue reflects provisions for returns and allowances related to its brand initiatives, as well as lower shipments in North America.

Also citing its brand initiatives, Revlon said its operating loss for the quarter grew to $32.3 million from $2 million last year.

Revlon Chief Executive Jack Stahl, said in a statement that “our financial performance does not yet reflect all the progress we are making in the marketplace,” and that some of the company’s “base products continue to be soft, where they have yet to benefit from our planned actions to re-energize important franchises.”