Revlon Inc (NYSE: REV) stock surged after the company’s Director Ronald O. Perelman bought 100,000 shares of the firm’s stock in a transaction dated Friday, September 21st. The shares were acquired at an average price of $20.95 per share, for a total transaction of $2,095,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission.
For the second quarter of 2018, REV Reported net sales were $606.8 million in the second quarter of 2018, compared to $645.7 million during the prior-year period. The change in net sales was primarily driven by approximately $30 million in net sales declines related to the Oxford, N.C. SAP service level disruptions impacting the Revlon and Portfolio segments, predominantly in the international market; and also the loss of certain licenses in 2018 in the Fragrance segment. These declines were partially offset by net sales growth associated with new products in the Portfolio segment and global growth in the Elizabeth Arden segment.
The company’s operating loss was $58.0 million in the second quarter of 2018, compared to operating income of $5.2 million in the prior-year period, driven by the $30 million net sales declines from the SAP service level disruptions; a $20.1 million loss, primarily non-cash, related to reacquiring certain iconic Elizabeth Arden trademark rights; and increased distribution costs driven by growth in Asia. On an Adjusted basis, operating loss was $4.7 million in the second quarter of 2018, which includes the $30 million negative impact of reduced net sales related to the SAP service level disruptions but excludes the impact of $23.1 million in charges related to the SAP service level disruptions and the $20.1 million charge associated with reacquiring certain Elizabeth Arden trademark rights, compared to operating income of $22.1 million in the prior-year period.
The company has posted net loss of $122.5 million in the second quarter of 2018, compared to $36.5 million in the prior-year period. This decline was primarily the result of the impacts from the $30 million in reduced net sales due to the SAP service level disruptions, increased distribution costs driven by growth in Asia, as well as a negative foreign currency impact of $29.6 million when compared to the prior year quarter. These decreases were partially offset by a benefit from the provision for income taxes of $2.8 million in the second quarter of 2018, as compared to a provision for income taxes of $11.9 million in the prior year quarter.