Revlon suffers from competition

The cosmetics company Revlon has said that its second-quarter profits suffered from tough competition with other brands.

Revlon, which owns the Almay and Ultima cosmetics lines, has also struggled to manage a heavy debt load.

We have been outmarketed and outinnovated

Debra Leipman-Yale
Revlon

The company has been losing market share to Procter & Gamble's Cover Girl and Max Factor brands, as well as Maybelline, which is owned by France's L'Oreal.

"We have been outmarketed and outinnovated," said executive vice president Debra Leipman-Yale.

The company posted a net loss for the second quarter of $35.4m, compared with a previous loss of $18m, a year ago.

Revlon's net sales fell 2.4% to $308.2m from $315.8m last year.

Marketing push

As a result of ramping up its marketing in the second half of the year, the company also warned that its earnings for 2002 will fall short.

Chief executive Jack Stahl, who was hired in February from Coca-Cola to lead a turnaround, said the company would now focus on increasing its market share and sales.

Until now, Revlon has focused on cutting costs.

Chief financial officer Douglas Greeff added the company usually generates cash in the second half of the year.