Revlon Inc. said Monday afternoon that Chief Executive and President Fabian Garcia had stepped down “to pursue other opportunities,” and gave an early look at fourth-quarter earnings numbers that show revenue higher than expectations. Revlon said Paul Meister, a member of the board, would oversee day-to-day operations until a replacement could be found, and that Garcia would stay on until the end of February to assist with the transition. “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,” board chairman Ronald Perelman said in Monday’s announcement. “We are aggressively catching up to that rapid transformation and I want to thank Fabian for his leadership through this challenging and dynamic period.” Revlon also said that it now expects fourth-quarter revenue of $785 million, higher than analysts’ average expectations of $743 million. Revlon expects a net loss of $60 million to $80 million for the quarter, due to a charge related to the recent tax cuts. The cosmetics company said it expects adjusted EBITDA to be $110 million to $115 million; analysts on average expected that profit figure to be $115 million, according to FactSet. “We’re encouraged by our fourth quarter results, which represent a sequential improvement from the first nine months of the year,” said Chief Financial Officer Chris Peterson said. Peterson also denied rumors that the company was considering a material-asset transfer that would shield the assets from lenders. Revlon shares gained about 2% in after-hours trading following the announcement; the company plans to divulge full quarterly-earnings information March 2.
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