Revlon sinks after expecting to identify ‘material weakness’ in financial reporting control

Revlon Inc (NYSE:REV) sank Monday after announcing that it expects to disclose in a securities filing that it has identified a material weakness in its internal control over financial reporting as of the end of 2018.

The cosmetics maker said in a statement that it will file Form 10-K with the Securities and Exchange Commission by March 29. The company said the situation will not result in any changes to its financial results.

Shares of Revlon dropped 15% to $16.50 in Monday’s after-hours trading.

For the fourth quarter, Revlon reported an adjusted loss of $0.86 per diluted share on revenue of $741.6 million, down 5.7% from a year earlier. One analyst expected net income of $0.15 per diluted share on revenue of $749.3 million.

“We are very pleased with our continued momentum during the fourth quarter of 2018 as we successfully execute on our core strategies and business transformation,” CEO Debra Perelman said in a statement.

She cited double-digit e-commerce growth thanks to strong performance from Singles Day in China and Black Friday in North America.

Contact Dennis Fitzgerald at [email protected]m

Story by ProactiveInvestors