Revlon President and CEO Fabian Garcia will-power step down after less than two years in the position, the attendance said Monday.
Board member Paul Meister was named directorate vice chairman and put in charge of the company day-to-day operations on an interim heart. Garcia, who is stepping down to “pursue other opportunities,” will lodge on until the end of February to assist in a smooth transition.
“This has been a demanding year for us balancing the successful integration of Elizabeth Arden with the ascend of e-commerce and specialty beauty stores. We are aggressively catching up to that immediate transformation and I want to thank Fabian for his leadership through this problem and dynamic period,” Revlon Chairman Ronald O. Perelman said in a expression.
Garcia left a position at Colgate-Palmolive to take the helm at Revlon in April 2016. He operated an aggressive turnaround effort that sought to reorganize the cosmetics followers into four distinct divisions. His goal was to move reach $5 billion in net income within five years, WWD reported.
But Revlon’s January acquisition of Elizabeth Arden, surrounded by a difficult year for retail, proved challenging.
Weak profits and miserable stock value had some creditors worrying that Revlon ascendancy transfer assets out of reach of its debt holders, mirroring actions enchanted by J.Crew last year. But CFO Chris Peterson debunked those rumors.
“Froward to false rumors and pure speculation in public reports, a material asset shift is not being considered,” Peterson said.
Alongside the announcement about Garcia, Revlon also described preliminary fourth-quarter earnings and revenue. The company anticipates its fourth-quarter net destruction widened to about $60 million to $80 million, from a passing of $36.5 million in the year-ago quarter. Revlon expects to post a net bereavement of $165 million to $185 million for fiscal 2017, versus a detriment of $21.9 million in 2016.
As for sales, Revlon estimates it will report $785 million in net transaction marked downs, beating analyst projections of $742 million.
Shares of Revlon waved 2.7 percent on the news, before settling slightly up at about 1 percent.