The beauty company's new CEO says it is implementing "near-term fixes" and "moving with deliberate urgency to design our turnaround plan."
The company posted “continuing declines across several beauty categories within the U.S. mass retail channel" in Q4.
"We believe Revlon will face difficulties to meaningfully improve its credit metrics during fiscal 2018," the rating agency says.
The deal opens up a new beauty products distribution channel for Coty as it seeks to reduce its dependence on fragrances.
The U.K. luxury goods company is pursuing a turnaround plan focused on cutting $124 million in costs and streamlining its product range.
The beauty products company posted EPS of 7 cents and $1.43 billion in revenue as it continued to execute a turnaround plan.
Elizabeth Arden's luxury skincare brands and celebrity fragrances could complement Revlon's strength in hair color and color cosmetics.
Topline net sales increased by 3.6% in the first quarter, with growth in the international consumer and U.S. professional segments especially strong.
