Revlon to exit ops in China, to cut 1,100 jobs

Revlon Inc, the maker of cosmetics under its namesake and Almay brands, will cease operations in China and eliminate about 1,100 positions, including 940 beauty advisers, as it restructures its struggling business.

China makes up about two per cent of Revlon's net sales, and the restructuring will result in about $22 million of pretax charges, the New York-based company said in a filing with the US Securities and Exchange Commission. The changes were expected to reduce costs by about $11 million a year, Revlon said.

The company, which posted profit declines in 2011 and 2012, has been making acquisitions and introducing new products as sales in some of its larger brands slow. Earlier last year, it bought Colomer Group, giving it Creative Nail professional and Shellac nail polishes and American Crew men's hair-care products.

"Revlon was unable to gain scale and relevance in the important Chinese beauty market," Connie Maneaty, an analyst at BMO Capital Markets in New York, wrote in a note.

Colomer Chief Executive Officer Lorenzo Delpani took over as Revlon's CEO in November, replacing interim chief David Kennedy.