American Beauty Giant Revlon Inc. saw its fourth-quarter profits surge upward, helped by growth in most of its global markets and a hefty income tax benefit.
For the quarter ended Dec. 31, the beauty brand recorded net income of $296.2 million, or $5.66 a diluted share, versus profits of $12.8 million, or 24 cents a share, in the year-ago period. Stripping out an income tax benefit, the company earned $35.6 million, or 68 cents a diluted share.
Net sales grew 7.1 percent to $369.2 million from $344.6 million a year earlier.
For the year, net income was $327.3 million, or $6.26 a diluted share, compared to $48.8 million, or 94 cents a share. Net sales for 2010 gained 2 percent to $1.32 billion, from $1.3 billion the prior year. Excluding unfavorable foreign currency fluctuations, net sales gained 2.3 percent.
“Following two years of declining net sales, we grew 2.3 percent in 2010,” said Alan Ennis, president and chief executive officer. “Strong performance in all of our regions outside of the U.S. was partially offset by a decline in the U.S. Region.” For the quarter, U.S. sales gained 7.5 percent to $201 million, driven by sales of Revlon and Almay cosmetics. However, for the year, U.S. sales decreased by 2.5 percent.
Ennis acknowledged “one quarter doesn’t make a trend,” but added, “We believe that we’re doing a lot of the right things to drive U.S. business to be profitable and to grow.”