Elizabeth Arden, Liz Claiborne sign long-term fragrance deal
NEW YORK Elizabeth Arden and Liz Claiborne have entered an exclusive long-term global licensing deal for Liz Claiborne fragrance brands. Terms of the deal were not disclosed.
The Liz Claiborne fragrance portfolio consists of such products as Juicy Couture, Usher, Curve by Liz Claiborne, Lucky Brand and the Liz, Realities, Bora Bora and Mambo fragrances.
According to E. Scott Beattie, chairman, president and chief executive officer of Elizabeth Arden, the deal will allow the company to benefit from improved market share and productivity in its North American fragrance business, gain efficiencies from a larger fragrance business, increase gross margins and bolster sales volume of its international business.
For Liz Claiborne, the transaction will enable it to maximize profitability going forward. “Through this partnership with Elizabeth Arden, we can continue to successfully develop and market brand enhancing fragrances in a more capital efficient manner, leveraging our strength in brand building with Arden’s expertise in developing and growing fragrance businesses,” stated William McComb, chief executive officer of Liz Claiborne.
Liz Claiborne expects the transaction to have a positive impact on its 2008 cash flows and to have no impact on 2008 projected adjusted EPS and operating margin. Looking forward to 2009 and beyond, the company expects the impact of the royalty income to be accretive to both EPS and operating margin.
Elizabeth Arden expects the deal to contribute to both net sales and earnings growth in fiscal 2009. It expects to incur advertising and marketing expenses paid by Liz Claiborne and other transaction related expenses during the fourth quarter of fiscal 2008 and the first half of fiscal 2009. Elizabeth Arden expects its gross margins to be impacted in the fourth quarter of fiscal 2008 and through the first half of fiscal 2009 by the sale of Liz Claiborne inventory that Elizabeth Arden acquired prior to the effective date as a distributor. After the full impact of these costs, Elizabeth Arden expects the deal to be accretive to earnings in the first half of fiscal 2009.
L’Oreal USA honors women in science
NEW YORK L’Oreal USA recently honored the 2008 recipients of the L’Oreal USA Fellowships For Women in Science at the American Museum of Natural History in New York City.
The women were recognized on May 22 for conducting innovative and breakthrough research across a range of disciplines, including neuroscience, oceanography and aerospace engineering. The Fellows represent the next generation of women scientific role models, following in the footsteps of chemist and physicist Marie Curie, and Elizabeth Blackwell, who, in 1849, became the first woman to graduate from medical school.
Recipients each receive $40,000 to be used toward independent scientific research. The Fellowship also offers professional development workshops for awardees and helps Fellows build networks with women leaders in corporate, academic, governmental and scientific fields.
The 2008 L’Oreal USA Fellows are:
- Dr. Sara Aton, University of Pennsylvania, who is a neuroscientist researching how the sleeping brain consolidates learning and memory.
- Dr. Ania Bleszynski-Jayich, Yale University, who is a physicist investigating the persistent current principle of quantum mechanics.
- Dr. Laura Lapham, Florida State University, who is a chemical oceanographer conducting research that may lead to new discoveries around the use of methane hydrates as a potential energy source.
- Dr. Srivdevi Vedula Sarma, Massachusetts Institute of Technology, who is a computational neuroscientist using technology to improve the deep brain stimulation technique to treat Parkinson’s disease.
- Dr. Sandra Ugrina, University of Maryland, who is an aerospace engineer developing techniques to help improve the aerodynamic efficiency of materials and reduce fuel consumption.
Barrier, P&G to combine dandruff shampoo with dermatitis treatment
PRINCETON, N.J. Barrier Therapeutics, a manufacturer of dermatology products has signed a deal to combine Procter & Gamble’s dandruff shampoo Head & Shoulders with its dermatitis treatment Xolegel, according to the Associated Press.
The new kit will be called Xolegel Duo and is expected to be available by prescription in June.
Under the terms of the agreement, Procter & Gamble will supply small bottles of the shampoo to Barrier who in turn, will be responsible for producing the kits and selling them. As a result, Barrier will receive all profits from sales of Xolegel Duo.