Revlon’s President and CEO Fabian Garcia will be stepping down after less than two years in the positions. This was announced by the company on Monday.
Garcia stated that his reason was to “pursue other opportunities.” He will be staying in position till the end of February to assist in a smooth transition.
Revlon board member Paul Meister, who was named executive vice chairman, will be taking over Garcia’s position. He was put in charge of the company’s day-to-day operations on an interim.
“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,” said Revlon Chairman Ronald O. Parelman in a statement.
Garcia previously held a position at Colgate-Palmolive before taking over as CEO at Revlon in April 2016. He was in position during an aggressive turnaround effort aimed to reorganize the cosmetics company into four different divisions. He had set a goal to reach $5 billion in revenue within five years.
Aside from the announcement of Garcia leaving, Revlon has also reported preliminary fourth-quarter earnings and revenue.
The company is expecting its fourth-quarter earnings to widen to around $60 million to $80 million. This was compared to a loss of $36.5 million during the year-ago quarter. Revlon is anticipating a net loss of $165 million to $185 million for its fiscal 2017 as compared to a loss of $21.9 million in 2016.
Revlon has made estimations of $785 million in net sales, surpassing analysts’ forecasts of $742 million.
Other than this, Revlon has acquired Elizabeth Arden in January during a difficult year for retail. The task has proved to be challenging.
Some creditors were worried that Revlon might react the same way J.Crew did last year. Due to weak profits and sinking stock value, concerns rose that Revlon might transfer assets out of reach of its debt holders.
The rumor has been immediately debunked by CFO Chris Peterson.
“Contrary to false rumors and pure speculation in public reports, a material asset transfer is not being considered,” said Peterson.
Revlon shares have surges 2.7 percent on the news before settling to a rise of 1 percent.