Credit: Shutterstock photoRevlon's skin care division contributes to around 12% of its revenues and around 11% of our stock price valuation for the company. Though Revlon is not a primary player in the skin care segment, its recent acquisition of Elizabeth Arden might help the company in gaining a larger prominence in the skincare segment. The U.S. prestige beauty market grew by 7% Y-o-Y to reach $16 billion in 2015 . Arden sells premium makeup, skincare, and a range of licensed prestige fragrances. In fact, skin care might have a 7% share in the combined entity's category mix as opposed to a mere 1% contribution in the category mix prior to the acquisition. Also, Arden's geographic reach in important regions such as Asia Pacific will further boost Revlon's global footprints.
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( Source: Revlon's 8-K Filing )
Revlon's Elizabeth Arden acquisition made the combined entity one of the top 20 beauty companies in the world. We expect Revlon's skin care revenues to increase by a CAGR of ~6% over the next 7 years.
Have more questions on Revlon? See the links below.
- What Is Revlon's Fundamental Value On The Basis Of Its Forecasted 2015 Results?
- How Has Revlon's Revenue And EBITDA Composition Changed Over 2012-2016E?
- What Is Revlon's Revenue And EBITDA Breakdown?
- Revlon: 2015 Year In Review
- What Is Revlon's Fundamental Value Based On 2016 Estimated Numbers?
- How Has The TCG Acquisition Boosted Revlon's Growth?
- How Did Revlon's Different Segments Perform Over The Last 5 Years?
- Revlon's Q1 2016 Earnings Results
- What Are The Implications Of Revlon's Acquisition Of Cutex International Business?
- Revlon's Expected Revenue And EBITDA For 2016: Trefis Estimate
- How Might The Acquisition Of Elizabeth Arden Help Revlon?
- How Is Revlon's Revenue Composition Expected To Trend?
- How Is Revlon Expecting To Benefit From The Elizabeth Arden Deal?
- How Might Revlon's Valuation Change Post The Elizabeth Arden Deal?
- How Do Revlon's Preliminary Q2 2016 Results Look?
- Revlon Is Gearing Up For A Bigger Presence In The Beauty Arena With The Elizabeth Arden Deal
- How Do We Expect Revlon's Hair Color Division To Trend?
- How Is Revlon's Color Cosmetics Division Expected To Trend?
- How Is Revlon's Antiperspirants, Deodorants, And Fragrances Division Expected To Trend?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Revlon
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
