Physicians Formula reports net loss in Q4
AZUSA, Calif. Physicians Formula Holdings posted a net loss during the fourth quarter, as consumer spending slowed and retailers tightened inventory control. The beauty company expects the challenging retail environment to continue in 2009.
Net sales for the fourth quarter ended Dec. 31, 2008 were $28.2 million, compared with net sales of $33.9 million in the year-ago period.
Net loss for the quarter was $24.5 million, or a loss of $1.80 per diluted share, compared with net income of $4.9 million, or a gain of 33 cents per diluted share, in the year-ago period. Excluding non-cash goodwill and intangible asset impairment charges, adjusted net income per diluted common share for fourth quarter 2008 was 13 cents.
Net sales for the full year 2008 were $114 million, up 2.2% compared with net sales of $111.5 million for 2007. Net loss for 2008 totaled $19.8 million, or a loss of $1.41 per diluted share, compared with a gain in the year-ago period of $8.7 million, or 60 cents per share. Excluding non-cash goodwill and intangible impairment charges, adjusted net income per diluted common share was 47 cents for 2008.
“Our 2009 strategic initiatives, including new product offerings, our new communication, promotional and merchandising platforms, were designed to raise the profile of our brand, to continue to push the boundaries of innovation and to improve the shopping experience,” stated Ingrid Jackel, chairwoman, CEO of Physicians Formula. “However, during the first quarter of the year, retailers continue to operate under unprecedented tight inventory control programs and, in addition, we are experiencing smaller pipeline orders compared to last year?s larger pipelines from space gains. We expect 2009 will continue to be a very challenging retail environment for our industry.”
Three brands to advertise on StoreBoard Media’s security pedestals
NEW YORK Alberto Culver’s Nexxus, Cadbury’s Halls and Kao’s Curel brands have signed on to advertise on StoreBoard Media’s security pedestal media, StoreBoard Media recently announced.
The three brands are currently featured on StoreBoard’s EyeCurve billboards at the entranceways of pharmacy retailers nationwide. The campaigns will run through April 19.
Nexxus and Halls are returning StoreBoard shopper-marketing advertisers, while Curel is making its StoreBoard debut.
StoreBoard shares its revenues with retailers, and because StoreBoard sells its product as media rather than promotion the retailers gain access to new marketing dollars from brands, the company stated.
StoreBoard sells its advertising in four-week cycles. The Nexxus, Halls and Curel campaigns comprise the fourth cycle for 2009.
Castanea Partners acquires majority stake in Urban Decay
NEWTON, Mass. Private equity firm Castanea Partners has acquired a majority stake in cosmetics brand Urban Decay, whose products are sold primarily through such specialty beauty retailers as Sephora, Ulta and higher-end department stores.
Financial terms of the acquisition from The Falic Group were not disclosed.
“Urban Decay is a great example of the types of entrepreneurial, growth-oriented businesses we seek to invest in at Castanea Partners,” stated Brian Knez, co-managing partner of Castanea Partners.
Founded in 1996, Urban Decay has more than 300 color cosmetic SKUs in all major cosmetic categories with its largest category in eye products.
Castanea stated that it will support the company as it continues to strengthen the brand, broaden its existing product line and expand into new markets. Tim Warner, Wende Zomnir and Eric Jimenez will continue in their current role as GM, co-founder and executive creative director, and worldwide retail director and international make-up artist, respectively.