Media & Marketing

                    Revlon Posts Wider Quarterly Loss, As Officials Say Rebound Continues

                    By EMILY NELSON
                    Staff Reporter of THE WALL STREET JOURNAL

                    Revlon Inc., facing operating problems, reported a steeper
                    net loss in the first quarter, even though executives said
                    their turnaround plan remains on track.

                    The cosmetics maker, controlled by New York financier Ronald
                    Perelman, posted a loss of $47 million, or 92 cents a share,
                    including $14.6 million in restructuring charges. In the
                    year-earlier quarter, it showed a loss of $27.9 million, or 54
                    cents a share, including $9.5 million in restructuring charges.

                    Revlon, which is heavily in debt, is trying to modernize its
                    image as well as repair relations with retailers, which were
                    angry at the company for shipping more merchandise than
                    they could sell. In the first quarter, however, some of
                    Revlon's promising new products were out of stock, partly
                    because production fell short. Further, many stores haven't
                    installed Revlon's new display racks, so new products weren't
                    featured.

                    Revlon said it has backed off parts of a strict new policy for
                    returned merchandise, after retailers balked. Executives said
                    the change won't hurt results.

                    Sales fell 28% in the first quarter to $323.3 million from
                    $448.8 million a year earlier. Executives blamed the sales
                    drop on several factors, including reduced promotional
                    spending and a smaller advertising budget.

                    Also, the year-earlier results include operations that have
                    since been sold. Revlon also discontinued 380 items, as part
                    of its long-term plan to focus on more popular products and
                    make room for new ones. But, when stores ran out of the
                    discontinued items, they didn't have Revlon's new displays,
                    so the new ones weren't substituted.

                    Revlon Chief Executive Jeffrey Nugent said sales and results
                    met plans. He added, "we expect to see improvements" in
                    the second quarter as the company introduces new products,
                    additional stores install its new displays, and more
                    consumers see its new advertising.

                    "The turnaround plan is working," Mr. Nugent said in a
                    conference call, adding that the company also has
                    "significantly" reduced its operating costs.

                    Operating results, which exclude charges and costs to
                    consolidate some manufacturing facilities, showed a loss of
                    47 cents a share, narrower than the loss of 69 cents a share
                    expected by the consensus of four analysts' estimates
                    compiled by Thomson Financial/First Call.

                    Revlon Class A shares were unchanged at $7 at 4 p.m. in
                    New York Stock Exchange composite trading Thursday.

                    Write to Emily Nelson at emily.nelson@wsj.com