Revlon on Monday announced that CEO-President Fabian Garcia has stepped down from his position to pursue other opportunities after a little less than two years in the job.
Board member Paul Meister, who has served on the board since 2016, will become Executive Vice Chairman of the Board, and will oversee day-to-day operations of the company on an interim basis, according to a company press release. Garcia will stay on through the end of February to assist with an orderly transition.
The company's board of directors also elected Debra Perelman, daughter of longtime board chairman Ronald Perelman, to be Chief Operating Officer, according to an 8-K filing with the Securities and Exchange Commission. She replaces Chris Peterson.
The executive shakeup at Revlon this week comes after months of sluggish sales, which is particularly grueling considering that a surging beauty market is one of the bright spots in retail. The company has also had to contend with integrating its $870 million purchase of Elizabeth Arden last year, exacerbating its debt load.
Revlon on Monday also announced preliminary unaudited financial results for its fiscal year and fourth quarter ended Dec. 31. The company now estimates that net sales were approximately $785 million for the fourth quarter, compared to $801 million in the year-ago period. Full year net sales are estimated to be approximately $2.7 billion, compared to $2.3 billion in 2016. The company estimates that its reported net loss for the fourth quarter was in a range of approximately $60 million to $80 million, compared to $36.5 million in the year-ago quarter.
"This has been a difficult year for us balancing the successful integration of Elizabeth Arden with the rise of e-commerce and specialty beauty stores. We are aggressively catching up to that rapid transformation and I want to thank Fabian for his leadership through this challenging and dynamic period," Ronald Perelman said in a statement, adding that the company is gaining momentum and is poised for growth. "I look forward to continuing to realize the benefits of the Elizabeth Arden acquisition and evolving to grow in this exciting new way of business."
Despite robust beauty sales in the wider market, the company is in a tough spot in today's retail environment, relying on third parties and its own marketing chops to keep consumers' attention. Revlon, a more than 100-year-old brand, doesn't sell directly to consumers — it's simply not cost effective to offer free shipping for a $7 lipstick, according to Swan Sit, vice president of global digital for Revlon, who spoke to Retail Dive last year. But it's deep into a digital transformation that includes tiered marketing, social media and data collection, she also said.
Meister reiterated that in a statement Monday. "We're putting our iconic brands at the center of our strategy to better position us in this rapidly evolving marketplace," he said. "I look forward to enhancing our operating structure, driving innovation, and strengthening the future leadership team."