Estee Lauder lowers outlook in light of economy, slow holiday sales
NEW YORK The Estee Lauder Companies has lowered its second quarter expectations and full year outlook in light of the economy crisis and a disappointing holiday shopping season.
“The unprecedented global economic crisis produced one of the worst holiday seasons in decades, with many U.S. retailers experiencing double-digit sales declines in nearly all categories,” stated William P. Lauder, CEO. “Our business was no exception to the downturn inconsumer spending and our second quarter results will come in lower than expected. Nevertheless, we believe we are growing global market share, even in the exceptionally challenging United States, with some of our brands generating share improvements during the quarter. We believe the current economic conditions, coupled with significant retailer destocking, will continue to negatively affect our sales for the balance of our fiscal year.”
The company now expects net sales for the second quarter to decrease about 6% on a constant currency basis versus last fiscal year’s second quarter. Previous expectations were of sales growth between 2% and 3%. In addition, the adverse effect of exchange rates is forecasted to lower reported sales for the second quarter by about 6.5%. Given the revised sales expectations, the company anticipates that diluted net earnings per share for the quarter will range between 75 cents and 82 cents.
Net sales for the fiscal 2009 full year are expected to be flat to down 3% on a constant currency basis. This compares with its previousguidance of 3% to 5% sales growth. Foreign currency translation is expected to negatively impact net sales by 5% to 7% versus the prior year. As a result, the company expects diluted net earnings per share for fiscal 2009 to be between $1.30 and $1.60. Theseexpectations exclude potential restructuring charges that the company may record by the end of the fiscal year.
Binaca releases portable breath-freshening products
LOS ANGELES Binaca breath freshener is getting a makeover with the new Binaca FastBlast and Binaca Breath Freshener Aerosol Spray.
Distributed by oral care company Dr. Fresh, the Binaca FastBlast is a small, non-aerosol pump available in Cinnamint or Peppermint. It is available in a single pack, a twin pack or in a “mini” size (.25 ounces).
Binaca Aerosol Breath Freshener comes in a lipstick-style package. It is available in Spearmint or Peppermint flavors. The product is sold individually or comes in a triple pack.
P&G announces retirement of global customer business development officer
CINCINNATI Procter & Gamble announced on Thursday that Mariano Martin, global customer business development officer, will retire from the company after 33 years of service.
Martin’s retirement will be effective June 30, but he will step down from his current role on Feb. 1 to work closely with his successor to ensure a smooth transition.
Succeeding Martin is Robert Fregolle Jr., current VP customer business development for P&G Asia, effective Feb. 1. In his new role as global customer business development officer, Fregolle will report to Werner Geissler, vice chairman of global operations.
“Mariano’s vision and leadership has enabled P&G to become a strong partner and preferred supplier to retail customers around the world,” stated P&G chairman and CEO A.G. Lafley. “He’s worked closely with leading retailers to create joint value and establish new ways of working together. He’s delivered P&G brands to more of the world’s consumers by expanding distribution to new retail channels and millions of high-frequency stores. And he’s strengthened the capabilities of our Global Customer Business Development organization.”