Colgate-Palmolive’s 4Q net income shows significant increase
NEW YORK Colgate-Palmolive experienced a boost in fourth-quarter net income as its toothpaste market share hit an all-time high.
Reported net income and diluted earnings per share during the quarter totaled $497 million and 94 cents, respectively. In the fourth quarter of 2007, net income and diluted earnings per share were $414.9 million and 77 cents, respectively.
Excluding restructuring charges, net income for the current quarter rose 7% to $527.5 million and diluted earnings per share increased 10% to $1, an all-time record. In the year-ago period, net income and diluted earnings per share, excluding restructuring charges, were $490.7 million and 91 cents, respectively.
Worldwide sales rose 0.5% during the quarter to a record $3.66 billion. Excluding divested businesses, worldwide sales and unit price volume grew 1% and 1.5%, respectively, and organic sales grew 9%.
North American sales grew 1.5% to a record level in the fourth quarter as operating profit rose 5% to an all-time record level.
In U.S. oral care, Colgate Total Advanced Clean and Colgate Total Advanced Whitening toothpastes, supported by an integrated marketing campaign featuring Brooke Shields and a professional sampling program, helped drive market share for Colgate Total toothpaste to a record high of 16% forthe year. Market share for Colgate Max Fresh toothpaste also hit a record high, according to the company, at 4.1% for the year. In the manual toothbrush market, Colgate?s share reached a record 27.1% for the year, up 1.5 share points versus the year-ago period. This success was fueled by Colgate 360, Colgate 360 Sensitive and new Colgate 360 Deep Clean manual toothbrushes.
For the first quarter of 2009, Colgate is launching in oral care Colgate Max White and Colgate Sensitive Enamel Protect toothpastes, as well as a Colgate Max White manual toothbrush.
Prestige beauty industry hit hardest last year
PORT WASHINGTON, N.Y. The prestige beauty industry struggled in 2008 while the make up and skin care categories in the mass channel experienced growth, according to The NPD Group, a market research company.
The NPD Group presented the findings at its annual “Hot off the Press” event at the Rainbow Room in New York on Wednesday.
According to NPD, the total U.S. prestige beauty industry experienced a decline of 3.3% in dollar sales in 2008 compared with 2007. Of all the categories tracked by the research company, fragrance experienced the biggest decline.
“Conversely, fragrance may hold the greatest opportunity for growth,” noted Karen Grant, senior global industry analyst and VP beauty. “The most pressing concerns for the fragrance category are not only the loss of users, but decreasing frequency of usage. It is important that the industry find new ways to engage consumers, especially as they become more independent about their product selection.”
Fragrance sales in the mass channel (excluding Wal-Mart) also experienced a decline; however, make up and skin care sales in the mass channel experienced growth.
Globally, the prestige beauty industry outpaced U.S. performance in 2008. China experienced ?impressive? sales growth in the fragrance, make up and skin care segments, as did Mexico. Meanwhile, Italy and France saw an increase in make up sales, as skin care sales declined in both countries.
Fragrance sales were flat in France and Italy.
Barbie celebrates 50 years at New York’s Fashion Week
EL SEGUNDO, Calif. Barbie is celebrating five decades as a fashion icon and pop culture princess with a line-up of celebrations, including the first-ever Barbie Runway Show at Fashion Week in New York in February.
On Feb. 14, 50 fashion designers will come together to showcase real-size, Barbie-inspired looks at Mercedes-Benz Fashion Week in the Tent at Bryant Park. Designer names are expected to be announced in early February.
In addition, cosmetics brand Stila has been named the Official Prestige Makeup Partner for 2009. In celebration of all things Barbie, Stila will introduce beauty products, including a limited edition spring collection of beauty cans and talking palette. This will precede a larger collection and Barbie beauty program slated for fall 2009 (available at Sephora 5th Avenue store, Sephora International stores and Sephora.com beginning in late January; fall collection due in late summer). The beauty program will extend beyond cosmetics and into hair care with partner T3. The T3 Barbie Hair Dryer is coming this fall.
Additional celebrations and partnerships taking place throughout the year include a Barbie Boutique & Exhibit at colette in Paris; the Jonathan Adler Loves Barbie collection of home decor for grown ups; and the opening in March 2009 of the brand?s first-ever flagship store in Shanghai. The Shanghai flagship store will house 1,500 square meters and six stories of Barbie retail-tainment. Designed for girls of all ages, the store will be a place where girls can shop, dine, enjoy a day at the spa and become a fashion designer or runway supermodel.