Revlon Shares Spike On Narrower-Than-Expected Loss In Q3; Notes Margin Expansion

Revlon Inc REV reported third-quarter FY21 sales growth of 9.2% year-on-year, to $521.1 million, missing the analyst consensus of $549.80 million.
Revlon sales grew 4.2% Y/Y, Elizabeth Arden rose 15.5%, Portfolio increased 13.2% and Fragrances rose 7%.
The gross profit increased 23.5% Y/Y to $299.9 million, with the margin expanding 670 basis points to 57.6%.
The operating margin was 6.5%, and operating income for the quarter was $34.1 million.
The company held $73.3 million in cash and equivalents as of September 30, 2021.
Adjusted EBITDA improved 51.2% Y/Y to $82.4 million.
Adjusted EPS loss of $(0.74) beat the analyst consensus of $(1.23).
"In terms of the macro environment, we continue to navigate global supply chain pressures, including increased prices on key ingredients and components, logistics challenges across all modes of transportation, and persistent labor shortages," said CEO Debra Perelman.
"While we expect these challenges to persist well into 2022, we are prepared to dynamically manage our business until the situation stabilizes," Perelman added.
Price Action: REV shares are trading higher by 20.1% at $14.25 on the last check Friday.