(Reuters) - Revlon Inc said on Monday Chief Executive Fabian Garcia was stepping down, two years after taking the helm of the cosmetics company.
Shares of the company rose 2.7 percent at $22.60 after the bell on Monday.
Board member Paul Meister will assume the role of executive vice chairman, overseeing day-to-day operations of the company on an interim basis, Revlon said.
Meister has served on Revlon’s board since 2016 and is currently president of MacAndrews & Forbes, the holding company through which billionaire Ronald Perelman owns an 85 percent stake in the cosmetics maker.
Garcia was hired from Colgate-Palmolive in April 2016 to turn around Revlon, which is struggling to keep pace with changing consumer preferences.
Revlon acquired Elizabeth Arden Inc in an $870 million deal to strengthen its skincare and fragrance business, following his appointment.
Under Garcia’s watch, the company restructured its operations and unveiled a brand-centric structure to drive global growth.
“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,” Chairman Perelman said in a statement.
“We are aggressively catching up to that rapid transformation and I want to thank Fabian for his leadership through this challenging and dynamic period.”
Garcia, who is stepping down to “pursue other opportunities,” will stay on until the end of February to assist in a smooth transition.
The company also said it expected fourth-quarter net sales of about $785 million, compared with $801 million a year earlier, and forecast a wider net loss.
Reporting by Vibhuti Sharma in Bengaluru; Editing by Anil D'Silva