NEW YORK — Strong sales counteracted several extraordinary charges affecting Alberto-Culver’s fourth-quarter and year-end results.
For the three months ended Sept. 30, the Menlo Park, Ill.-based personal care products manufacturer saw earnings rise 4.9 percent to $48 million, or 52 cents, short of the 58 cents Wall Street analysts expected. Comparatively, the company reported earnings of $45.7 million, or 51 cents, in the same period a year ago. Currency exchange translations had a negative 2.1 percent impact on fourth-quarter results.
Further hampering results was a $12.6 million pretax charge related to the buyback of $200 million of its 8.25 percent senior notes. Sales for the period jumped 13.2 percent to $850.7 million from $751.6 million.
Sales in the company’s consumer products segment were led by the Alberto VO5, St. Ives and TRESemmé product lines, said Howard Bernick, president and chief executive officer, in a statement.
Charges had a greater effect on year-end results, sinking earnings 12.6 percent to $141.8 million, or $1.54, compared with earnings of $162.2 million, or $1.80, in 2003. Sales rose 12.7 percent to $3.26 billion from $2.89 billion.
The company said several events throughout the year affected results, including the early debt redemption during the fourth quarter, a charge related to the company’s move to one class of common stock and a gain realized on the sale of its Indola European business.
“Selling our Indola business, which had been losing some money for us over the years and was noncore to our level of expertise, I think was an excellent idea,” said Bernick during the company conference call. “And, of course, being in a position to pay off that debt early to give us additional funding to invest in our business in 2005, through savings and reduced interest expense, is also very positive.”
According to Bernick, the company increased funding for advertising and marketing by 20 percent to $254 million, compared with $212 million in 2003.
@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