However, net sales and operating profits for the period remained largely unchanged from last year’s third quarter.
Marginal sales increase
Net sales for the three months ending September 30 reached $334.4m, a marginal increase on the $330.8m recorded last year.
The slight increase is thanks to the company’s international operations, where sales increased 3.6 percent, just offsetting the drop in US sales.
New product launches helped build up sales in the quarter particularly new additions to the Revlon color cosmetics range.
However, the gains were offset by declines in fragrance sales. In addition, the new product launches brought with them increased advertising and marketing costs, affecting operating profits.
Although selling, general and administrative costs were lower for the quarter the higher cost of sales meant operating profit for the two corresponding periods remained stable at $19.8m.
Bottom line benefits from Brazilian sale
However, the company’s bottom line looked healthy, standing at $29.2m in comparison to a loss of $10.4m for last year’s quarter.
Much of this was down to profits from the sale of certain brands including the men’s hair care and shaving range Bozzano, through the company’s Brazilian subsidiary Ceil.
The transaction was completed earlier this summer and resulted in the addition of $45.2m on the balance sheet as a gain on the disposal of discontinued operations.
Commenting on the results, Revlon CEO David Kennedy, said he was confident that 2008’s full year results will include improved operating margins, profitability and free cash flow from continuing operations.
Nevertheless, he conceded that the health of the market may affect sales before the year is out.
“In addition, the recent strengthening of the US dollar will likely impact our reported results in the fourth quarter of 2008,” he added.