Trade war's ugly and beauty,news by Hebei Longsheng
| Revlon's China choice paints ugly picture for profits Cosmetics maker Revlon reported a $3.7 million drag to its 3Q profits from U.S. tariffs on Chinese exports, which compared to total pre-tax profits of $19.7 million. The personal care industry has been exposed to "list 3" tariffs since Sept. 2018, initially at a rate of 10% which was increased to 25% in May. China accounted for 14.9% of U.S. imports of cosmetics, hair care, dental care and shaving supplies, which in aggregate were worth $7.85 billion in the 12 months to Sept. 30. The industry has stagnated – imports from China fell 25.4% year over year in 3Q while those from the rest of the world were unchanged. Revlon is more exposed than most of its peers to China, with 30.2% of cosmetic imports linked to the firm coming from China in the 12 months to Oct. 31. By comparison for L’Oreal and Shiseido the figures were 8.3% and 2.9% respectively while for most others including Estee Lauder it is below 1%. The outlier is Markwins, with essentially all cosmetic imports linked to the firm having come from China. |
