Revlon Inc., which is struggling to turn its business around, said Jack Stahl has resigned after more than four years as chief executive and president of the cosmetics maker.
Stahl, 53, who joined Revlon as CEO in early 2002, will be succeeded immediately by David L. Kennedy, 59, Revlon’s chief financial officer, the company said Monday. Stahl will stay on for 30 days to help with the transition.
The announcement comes six weeks after Revlon reported a wider second-quarter loss, dragged down by the disappointing launch of Vital Radiance, a much heralded line aimed at women over age 50.
This will be the third CEO Revlon has had since 2000 as the owner of brands include Flex shampoo and Almay makeup, struggles to become profitable and increase market share amid higher competition from L’Oreal SA’s Maybelline and P&G’s Cover Girl.
Kennedy joined Revlon as executive vice president and president of Revlon International in 2002 and became chief financial officer of the parent company earlier this year. Both Stahl and Kennedy are former employees of The Coca-Cola Co., the world’s biggest soft drink company.
“David Kennedy is a talented, experienced executive who, as president of Revlon International, restored meaningful profitability to the international business through aggressive control of costs and strong top-line growth,” Ronald Perelman, chairman of Revlon’s board and the company’s majority shareholder, said in a statement. “We believe he will provide the company with outstanding leadership as we move to strengthen Revlon’s brands, improve performance and build value for shareholders.”
Kennedy’s 33-year business career includes several senior management and senior financial positions with Coca-Cola and Coca-Cola affiliates, including serving as managing director of Coca-Cola Amatil Ltd., a publicly held company based in Australia, and as general manager of The Coca-Cola Foundation Division. He also served in various key financial positions at Columbia Pictures.
Perelman said Stahl “has made significant contributions” at Revlon, adding “we appreciate his tireless efforts.”
Stahl took over as CEO from Jeff Nugent, who abruptly departed after only two years on the job.
Under Stahl, Revlon had been on a campaign to strengthen its brands and revitalize sales of color cosmetics, like lipstick and blush. Under his stewardship, Revlon has made major inroads in cutting its debt. Revlon announced in February it was undertaking an overhaul of its business in which it will eliminate about 165 jobs — or just under 2.5 percent of its global work force — in an effort to reduce costs.
But Revlon suffered another setback as its second-quarter loss widened, dragged down by the disappointing consumer reaction to Vital Radiance.
Revlon has been counting on the performance of Vital Radiance, its biggest launch in more than a decade, as well as the relaunch of its Almay brand, to help continue a turnaround begun in early 2002. Revlon launched Vital Radiance, which featured more than 100 cosmetic products, at mass retailers in late 2005, but many merchants cut back on how much space they allotted to it amid disappointing results.
Revlon reported in July it lost $87.1 million, or 21 cents per share, for the three months ended June 30 versus a loss of $35.8 million, or 10 cents per share, during the same period a year ago.
Revenue edged up to $321.1 million from $318.3 million last year.
At that time, Revlon reaffirmed guidance of a profit in 2006, before taxes, interest and other charges, to be flat or below 2005 earnings of $167 million. Revenue is expected to be up in the mid-single-digit range from 2005 revenue of $1.33 billion.
Shares fell in midday trading on the New York Stock Exchange.