Bare Escentuals posts double-digit Q1 sales gains
SAN FRANCISCO Bare Escentuals posted double-digit sales gains during the first quarter and stated that it is on track to expand its presence domestically and internationally.
Net sales for the quarter ended March 30 totaled $140.4 million, up about 21 percent from $115.6 million in the year-ago period.
Net income totaled $25.8 million, or 28 cents per share, compared with $20.4 million, or 22 cents per share, in the year-ago period.
“We are pleased with our strong start to 2008 which reflects a continuation of the positive brand momentum experienced in 2007,” stated Leslie Blodgett, chief executive officer. “We are on track to significantly expand our points of presence domestically and internationally, including our recent launch at Selfridges in London, our first department store in the United Kingdom. At the same time, we’re excited about our new business initiatives, including the growth of our mineral skin care line, RareMinerals.”
For fiscal 2008, the company continues to expect sales to grow in the range of 20 percent to 25 percent and diluted earnings per share are expected to range between $1.13 and $1.18 on about 93.8 million shares outstanding.
Revlon announces improved Q1 financials
NEW YORK Revlon announced on Thursday that it narrowed its first-quarter loss as it gears up for the launch of several new products, including the new Revlon Beyond Natural collection for eyes, lips and face.
Net loss during the quarter ended March 31 totaled $2.5 million, or nil per diluted share, compared with a loss in the year ago period of $35.2 million, or 7 cents per share. Operating income was $32.5 million compared with $3 million in the year-ago period. Adjusted EBITDA was $58.1 million versus $32.2 million last year.
Operating income, net loss and adjusted EBITDA in the current quarter included a net gain of $6 million related to the sale of non-core trademarks. Operating income, net loss and adjusted EBITDA in the first quarter of 2007 were reduced by $4.3 million due to restructuring charges and included a benefit of $4.4 million from the reduction of lease liability to the consolidation of office space in New York.
Revlon attributed the improvement in operating income, net loss and adjusted EBITDA during the current quarter to lower SG&A expenses, as the first quarter of 2007 included significant brand support expenses related to the launch of Revlon Colorist hair color.
Net sales decreased 2.5 percent to $320.4 million compared with net sales of $328.6 million in the year-ago period. In the United States, net sales decreased 8.3 percent to $177.2 million.
“Our strong financial results for the first quarter of 2008 build upon our performance in 2007. These results continue to validate our strategy, and we remain focused on increasing the value of our company by building the Revlon brand,” stated David Kennedy, Revlon president and chief executive officer.
The beauty company noted that, in the United States, its Revlon Custom Creations foundation and Revlon ColorStay Mineral foundation were ranked in the ACNielsen top 10 new products (by retail dollar sales) in the first quarter, and three new Almay product launches were in the top 20, namely, Almay TLC Truly Lasting Color makeup and Almay Intense i-Color mascara and eye shadow.
For the second half of 2008, the company will be launching several new products under the Revlon and Almay brands. New launches include:
- Revlon Beyond Natural: A collection for face, eyes and lip that includes a smoothing primer, a skin matching makeup, a concealer and highlighter in a single compact, a cream-to-powder eye shadow, a defining eye pencil, mascara, cream lip gloss and a protective lip tint.
- Revlon ColorStay Mineral Lipglaze that promises to last up to eight hours and is an extension of the Revlon ColorStay mineral face and eye collection.
- Revlon Lash Fantasy Total Definition Mascara: A relaunch of the Lash Fantasy mascara.
- Crush on Color: A summer 2008 collection of 13 new and on-trend shades that will be introduced into the Revlon Super Lustrous lipstick and lip gloss, Revlon ColorStay 12-hour eye shadow and Revlon nail enamel.
- Almay Bright Eyes Collection: A three-product collection of eye base and concealer, eye shadow and eye liner/highlighter duo.
- Almay Smart Shade Concealer, which is another extension of the Smart Shade line.
- Almay TLC Truly Lasting Color Pressed Powder: A long-wear makeup that incorporates skin care benefits.
Trower to join Estee Lauder as vp of global communications
NEW YORK The Estee Lauder Companies has hired Alexandra Trower as executive vice president of global communications, reporting to chief executive officer William Lauder.
In her new role, Trower will direct the overall communications strategy at The Estee Lauder Companies. She will oversee the four specialties of global communications—brand communications, corporate communications, internal communications and consumer communications. In addition, she will counsel senior corporate executives, brand presidents and others throughout the global organization on communications issues and events, while working closely with investor relations.
Previously, Trower was senior vice president of media relations for Bank of America. Before that she was a managing director at JPMorgan Chase. She also spent 10 years at Chancellor LGT Asset Management, now part of Invesco, where she was vice president of corporate communications.