Cosmetics maker Revlon to exit China
Dec 31 (Reuters) - Cosmetics maker Revlon Inc, known for its Almay and Sinful Colors brands, said it would exit its China operations as part of a restructuring that would save about $11 million annually.
Sales from China, which had declined in 2012, accounted for about 2 percent of Revlon's total net sales. The company posted total net sales of $1.43 billion in 2012.
Revlon said it would also cut 1,100 positions, primarily in China, which include 940 beauty advisors retained through a third-party agency.
The company said it expects to incur about $22 million of pretax restructuring and related charges. About $10 million of the charges will be employee-related costs, with the rest from sales markdowns and inventory write-offs.
Revlon, owned by buyout titan Ronald Perelman, said it recorded $20.9 million of the charges in December 2013, with the rest expected during 2014.
The company said about $8 million of the annual savings are expected to benefit 2014 results.
Revlon named JPMorgan Chase & Co veteran Larry Alletto as chief financial officer in October.
Revlon shares have risen about 69 percent this year to their Monday close of $24.56 on the New York Stock Exchange.
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