Revlon announced Monday afternoon that Chief Executive Officer and President, Fabian Garcia, would be stepping down at the end of February to pursue other career opportunities.
Paul Meister, currently a member of Revlon’s Board of Directors, will become Executive Vice Chairman of the Board, overseeing day-to-day operations of the company on an interim basis. Fabian will stay on through the end of February to assist Paul with an orderly transition of his duties.
Fabian joined Revlon in April 2016 from Colgate Palmolive, where he led the company’s businesses in Asia-Pacific, Eurasia, Latin America, Europe and the Hills Pet Nutrition business.
The news comes on the heels of Revlon’s estimated fourth quarter and year-end results. The company currently estimates that net sales were approximately $785 million for the three-month period ended December 31, 2017, compared to $801 million in the fourth quarter of 2016. Full year 2017 net sales are estimated to be approximately $2.7 billion, compared to $2.3 billion in 2016. The net loss for the fourth quarter 2017 was in a range of approximately $60 million to $80 million, compared to $36.5 million in the fourth quarter of 2016. Full year 2017 net loss is estimated to be in the range of approximately $165 million to $185 million, compared to $21.9 million in 2016. The 2017 net loss includes the expected impact of a significant non-cash charge related to the recently enacted tax reform and an approximate $11 million projected non-cash goodwill impairment charge, on both a pre-tax and after-tax basis, recognized in the fourth quarter of 2017 relating to Revlon’s Global Color Brands reporting unit. Revlon delivered strong results on the Elizabeth Arden Integration Program, realizing approximately $70 million of synergies and cost reductions in 2017. Revlon intends to release actual fourth quarter and full year 2017 earnings results on March 2.
“It has been a privilege to serve as CEO of this iconic company,” said Fabian Garcia. “I want to thank each and every one of the women and men of Revlon whose relentless commitment and passion for the beauty business have made this company the global cosmetics leader it remains today. I also want to thank MacAndrews & Forbes for their support as we started to transform the company after the Elizabeth Arden acquisition all the way through the most recent launch of the new and exciting ‘Live Boldly’ Revlon campaign. I’m confident that Revlon will continue to succeed as the company executes its long-term growth plan, which is already having an impact on reestablishing its status as a trendsetter and pioneer in the industry,” said in a statement.
“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,” said Ronald O. Perelman, Chairman of the Revlon Board of Directors. “I look forward to continuing to realize the benefits of the Elizabeth Arden acquisition and evolving to grow in this exciting new way of business. The company has gained momentum and is now poised for future growth.”