Revlon President along with CEO Fabian Garcia will step down after less than two years inside the position, the company said Monday.
Board member Paul Meister was named executive vice chairman along with put in charge of the company day-to-day operations on an interim basis. Garcia, who is usually stepping down to “pursue some other opportunities,” will stay on until the end of February to assist in a smooth transition.
“This specific has been a difficult year for us balancing the successful integration of Elizabeth Arden with the rise of e-commerce along with specialty beauty stores. We are aggressively catching up to of which rapid transformation along with I want to thank Fabian for his leadership through This specific challenging along with 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 of which sought to reorganize the cosmetics company into four distinct divisions. His goal was to move reach $5 billion in revenue within 5 years, WWD reported.
however Revlon’s January acquisition of Elizabeth Arden, amid a difficult year for retail, proved challenging.
Weak profits along with sinking stock value had some creditors worrying of which Revlon might transfer assets out of reach of its debt holders, mirroring actions taken by J.Crew last year. however CFO Chris Peterson debunked those rumors.
“Contrary to false rumors along with pure speculation in public reports, a material asset transfer is usually not being considered,” Peterson said.
Alongside the announcement about Garcia, Revlon also reported preliminary fourth-quarter earnings along with revenue. The company anticipates its fourth-quarter net loss widened to about $60 million to $80 million, via a loss of $36.5 million inside 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 of which 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.