Revlon shares plunged more than 18 percent Tuesday after new data showed a steep sales deceleration at the multinational cosmetics company.
Sales decelerated 15 percent in the four weeks ended Feb. 23, according to Jefferies analyst Stephanie Wissink. That’s in addition to a 9 percent decline over the last 12 months, the analyst added, citing Nielsen data. Revlon did not have a comment immediately available when contacted by CNBC.
Weak profits and sinking stock value had some creditors worrying last year that Revlon might transfer assets out of reach of its debt holders, mirroring actions taken by J.Crew last year. But CFO Chris Peterson later batted down those rumors.
Though decline revenues tend to weigh on a company’s share in general, Revlon’s stock price slide is likely exacerbated by its illiquid equity pool. There are only about 7 million Revlon shares available to the public markets since a subsidiary led by Chairman Ronald Perelman owns more than 85 percent of outstanding equity.
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