Revlon is a well-known brand in the cosmetics industry is currently facing stiff competition from the competitors in the retail market as well as online market. The biggest competitors like Sephora and Ulta are giving stiff competition by improving their in-store engagement experience for their customers and companies like Amazon have captured the online market thereby making it difficult for Revlon to retain and improve their market position in the near future. In such critical situation, the company is hit with shocking news of the departure of the current CEO Fabian Garcia in order to explore better career opportunities. It is clearly evident in such critical scenario that the downfall in the sales revenue and profits of the in-house store over the last quarter is responsible for such a major step by the CEO. Paul Meister, a current Revlon board member would be handling the position of the executive vice chairman and execute all the daily operational and business activities until the selection of the new CEO is not conducted.
The company confirmed that the departure of the current CEO Fabian Garcia would be completed in next month in order to ensure that the transfer policies and activities of the role and responsibilities are completed in a smooth manner. The decline in the sales revenue and profits for the last financial quarter recorded loss of $60 million to $80 million against the loss of $36.5 million due to the same tenure of the last year. This indicates that the situation is worse and they need to take some strategic initiatives in order to retain their market position and target customer base. The overall net loss recorded by the cosmetic company for the previous year is between $165 million to $185 million questioning the capabilities of the organization to improve their position in the retail market. The over-charging of one-time charge collected by the organization is considered to be responsible partially for the decline in their total sales revenue and profits for the financial year ending 2017.
This cosmetic company made an announcement during last June about acquiring their rival competitor Elizabeth Arden which holds a huge range of cosmetic and makeup products, skin-care products and celebrity fragrances for the total amount of $419.3 million. MacAndrews & Forbes is one of the biggest investment companies contributing their investments in the Revlon brand company. The billionaire Ron Perelman is the current chairman owing the investment firm and also the Revlon brand stated that he still has the firm belief in the strategic approach of the cosmetic brand and it is still on the right track to improve their current situation in an effective manner.