NEW YORK — Wella AG on Tuesday reported first-quarter results that were lifted by acquisitions but hampered by unfavorable currency translations.
In the three months ended March 31, the Darmstadt, Germany-based beauty and hair care firm reported corporate operating profits, or earnings before interest and taxes, rose 2.3 percent to $67.1 million from $65.6 million in last year’s quarter. As a percentage of sales, EBIT rose to 7.9 from 7.5 percent in the year-ago quarter. Excluding the detrimental effect of currency fluctuation, EBIT would have risen 7.7 percent.
Despite a currency-driven 18.5 percent decrease in North American sales, the firm said overall results were largely in line with expectations. Forecasting results for the full year, the company said: “We still believe that Wella Group will achieve a double-digit EBIT margin for the first time over this year as a whole. EBIT growth should thus again outpace a sales increase in fiscal 2003.”
Dollar figures have been converted from the euro at current exchange rates. The firm didn’t report net profits for the quarter.
Sales for the group, which has agreed to have the majority of its equity acquired by Procter & Gamble, declined 3.1 percent to $843.5 million from $870.1 million last year. Eliminating the effect of currency swings, sales would have escalated 6.6 percent, a figure reduced to 3.5 percent if acquisitions are subtracted.
The Cosmetics and Fragrances group was the only one of Wella’s three business units to register increases in sales or earnings. Bolstered by the April 2002 acquisition of Escada Beauté Group SA, EBIT bounded 73 percent to $14.8 million from $8.5 million in last year’s quarter, while sales advanced 26.2 percent to $187.8 million from $148.9 million. Excluding both currency fluctuation and acquisitions, EBIT was up even more, 75.7 percent, but sales were up a less-robust 17.9 percent.
The Professional division, Wella’s biggest, weathered an 8 percent drop in sales, to $413.3 million, and a 5 percent drop in EBIT, to $52.2 million. Excluding currency and acquisition effects, EBIT declined 4.2 percent and sales dipped 0.9 percent. The Consumer segment saw EBIT fall 12.7 percent to $8 million, although the figure advanced 17.7 percent in local currencies. Consumer sales declined 10.9 percent, to $242.4 million, but accelerated 2.9 percent in constant currencies.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews