Following Revlon Inc.’s announcement of cost-cutting plans and its higher-than-expected Q3 revenues, the company's stock jumped the most in a month.
The cosmetics and personal care company said it would lower costs by as much as $150 million by the end of 2019. On Friday, Chief Executive Officer Debra Perelman revealed the company’s plan to concentrate resources on “higher-priority growth areas”, and that might lead to job cuts. This is one of the examples where online retail and growing competition have increased challenges for consumer companies including beauty/skincare brands.
Nevertheless, Revlon did manage to significantly improve earnings in Q3. Earnings per share came in at $0.14, from a loss of $0.38 in the same period a year ago.The company's Q3 revenue was $655.4 million, beating the consensus expectation of $639.6 million.
On Friday, Revlon shares surged +22%.