Moody's early warning in action: Revlon, Inc.

With the possibility of a global recession looming and rising corporate default risk, early warning signals are more important now than ever. 

Net sales for the 90-year-old multinational cosmetics company dropped 20% in 2020 from $2.4B in 2019. In March 2020, the company cut 1,000 jobs to help profitability. Mask-wearing from the pandemic only accelerated on-going issues from growing competition. In June 2022, Revlon filed for bankruptcy driven by its high debt, rising prices, and supply chain constraints.