Ellen Brothers named to Bare Escentuals board of directors
SAN FRANCISCO Bare Escentuals, a maker of mineral-based cosmetics, has appointed Ellen Brothers an independent member of its board of directors and a member of the board’s nominating and corporate governance committee.
Brothers brings nearly 30 years of senior management experience, most recently as president of the American Girls Brands, a business unit of Mattel. In this role, she is responsible for the strategic vision and day-to-day operations of the organization, which includes direct marketing, experiential retail and publishing channels.
Brothers joined American Girl in 1995 as VP catalogue marketing. She was named president of the company in 2000, succeeding founder Pleasant Rowland. Prior to American Girl, she was with Pepperidge Farm Mail Order Company for10 years, where she served as president and GM.
Emma Roberts signs on as Neutrogena brand ambassador
LOS ANGELES Neutrogena, a subsidiary of Johnson & Johnson, has signed actress Emma Roberts as its newest brand ambassador.
As a new face and voice of Neutrogena, she joins a list of beauty icons that includes Diane Lane, Jennifer Garner, Vanessa Hudgens, Hayden Panettiere, Gabrielle Union, Susie Castillo, Malin Ackerman and Natascha McElhone.
Roberts became a household name upon starring in the Nickelodeon television series “Unfabulous,” which was one of the highest rated tween shows on television. Her film career has included roles in the domestic and international box office successes “Aquamarine,” “Nancy Drew,” “Wild Child,” and in theaters now, “Hotel for Dogs.”
Estee Lauder outlines 4-year strategy, will cut jobs
NEW YORK Battling challenging global economic conditions, The Estee Lauder Cos. has unveiled a four-year strategy to drive sales, reduce costs and realign its organizational structure, a move that will result in the reduction of about 2,000 employees over the next two years.
“The factors that impacted our second-quarter results were challenging on multiple levels, and not different from what many other companies have experienced, especially those companies dependent on consumer spending,” stated William Lauder, CEO. “The current difficult environment, which is global in scale, is not expected to improve in the near term. This underscores how vital it is for us to execute on our long-term strategy, even as we address the short-term challenges.”
During the quarter ended Dec. 31, each of the company’s product categories and geographic regions were adversely impacted by the economy. The worldwide economic downturn has negatively affected consumer demand, according to the beauty company, resulting in weak retail sales and prompting significant inventory destocking by certain key retailers.
Net sales for the quarter were $2.04 billion compared with $2.31 billion in the year-ago period. Net earnings totaled $158 million compared with $224.4 million last year. Diluted net earnings per common share were 80 cents compared with $1.14 reported in the prior-year quarter.
Looking to build on its core strengths, sharpen its focus on execution capabilities and lower costs, the company has outlined a four-year strategic plan and set performance goals for fiscal year 2010 through fiscal 2013. The plan includes, but is not limited to:
- Generating more than 60% of sales outside the United States, making the company more balanced and diversified. The Asia/Pacific region is expected to lead growth, followed by Europe, the Middle East and Africa.
- Address underperforming brands by changing their business models to improve profitability within 18 to 24 months.
- Cut costs by $450 million to $550 million, including improvements in cost of goods, organizational resizing and regional realignments, benefits from the Strategic Modernization Initiative, reduction and management of SKUs, logistic optimization, indirect procurement savings and selective outsourcing opportunities.
- Reduce headcount over the next two years by about 2,000 employees, or 6% of the work force, institute an immediate companywide freeze on merit raises and a continuation of the current hiring freeze. Reductions would occur through a combination of normal attrition, reorganizations and job eliminations.
- Reinvest about $50 million to fuel growth and gain global share.