Revlon (NYSE:REV) stock is faltering in early trading today after the company released second-quarter results. Revlon is also undergoing an important managerial transition; CFO Victoria Dolan is retiring.
Suffice it to say, a lot has been going on with Revlon lately. Dolan’s departure is yet another piece to the puzzle. The CFO transition won’t be too abrupt, however. Dolan will remain CFO until Sept. 30, giving the company some time to adjust.
Today, traders were probably not too concerned with the CFO change. Rather, investors are likely focusing on the Q2 financial results, which came out today. For the period, Revlon’s adjusted net sales declined 11% year-over-year (YOY) to $442.6 million. Further, the company’s adjusted net earnings loss widened considerably, increasing from $54.5 million in Q2 2021 to $227.4 million in Q2 2022.
What’s Happening with REV Stock?
REV stock is down about 5% this morning, most likely due to the lackluster results. Now, shares trade closer to the $8 level. However, this change is a drop in the bucket compared to REV stock’s powerful rally this month.
Shares of Revlon stock started August at about $4 and change, but they quickly rallied to $10 per share. So, the pullback to $8 may just be a speed bump on the way to higher price points.
What caused the astonishing early August rally in REV stock? No company-specific news seems to explain the strong price move. Rather, shares may have climbed due to a short squeeze.
So, meme stock mania appears to be back and Revlon is part of the phenomenon, whether it wants to be or not. Therefore, today’s price pullback in REV stock isn’t necessarily the start of a bigger downtrend. If traders can get back on track, Revlon’s disappointing Q2 report could be old news by tomorrow.
On the date of publication, David Moadel did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.