Beauty Beat: Groupe Clarins Profits Hit $107M … China, Brazil Win L’Oreal Challenge
PARIS — Groupe Clarins posted consolidated net profits of 81.9 million euros, or $107 million at average exchange rates, up 170.5 percent in 2004 over 2003. The sharp increase largely reflects the cessation of the company’s Thierry Mugler...
PARIS — Groupe Clarins posted consolidated net profits of 81.9 million euros, or $107 million at average exchange rates, up 170.5 percent in 2004 over 2003. The sharp increase largely reflects the cessation of the company’s Thierry Mugler couture activities last year.
At constant exchange, Clarins’ profits spiked 189.1 percent in the period.
Excluding couture, the company’s net profits rose to 81.7 million euros, or $106.7 million, a 26.7 percent gain at average exchange and 34.4 percent at constant exchange.
Consolidated operating profits for the firm came in at 124.4 million euros, or $162.5 million, an uptick of 16 percent at average exchange, or 23.8 percent at constant exchange.
“The 2004 results can be summed up in one word — good,” said Christian Courtin, company president and chief executive officer, at a financial analyst meeting held here Friday. He added that Clarins had surpassed its objectives for 2004 despite a difficult marketplace, which included depressed economies in countries such as France, Italy and Germany; retailers’ fickleness in their placement of orders, and other negative factors.
Clarins posted top-line growth of 5.6 percent for 2004 over 2003 with net sales rising to 939 million euros, or $1.17 billion.
Olivier Courtin, Clarins’ vice president of research and development, outlined some of the launch highlights of 2004. In skin care, these included Super Restorative Day Cream and Night Wear, which opened the mature women segment for Clarins.
There was also the White Plus line for the Asian market; Eye Revive Beauty Flash, which is billed to have “an immediate effect”; Energizing Hydra-Wear Express Body Lotion, and two new items for the Clarins Men skin care line.
In makeup, True Radiance Foundation, the Sweet Sensations colored lip balm collection and the True Emotions color line were named. For fragrance, B Men and Visit for Women were cited as key.
This year, Clarins will focus on launching three fragrances under the Clarins, Thierry Mugler and Stella Cadente brands. The cost of these introductions is expected to slightly impact the company’s operating margin next year, according to Christian Courtin, who added that the firm’s fragrance sales should rise 18 percent in 2005 over 2004.Last year, Clarins’ scent business reached 348.5 million euros, or $455.3 million, up 3.3 percent at average exchange and 7.9 at constant exchange.
The company also registered first-quarter 2005 net sales of 225.1 million euros, or $298.3 million, up 5.1 percent at average exchange and 6.6 percent at constant exchange. Organic growth increased 6.6 percent against the prior-year period.
Analysts were bullish on Clarins’ turnout. In fact, their mood was so jovial that many present at the financial meeting joined in singing a refrain of a comical song about changes in French accounting methods that was coined by Clarins’ financial chief, Pierre Milet. The chanson was set to an old French children’s tune.
Clarins stock closed up 2.44 percent to a unit price of 50.30 euros, or $64.93, on the French Bourse Friday. — Jennifer Weil
China, Brazil Win L’Oreal Challenge PARIS — Six students from China were among the winners this year of L’Oréal’s ultracompetitive e-Strat Challenge, the popular online business strategy competition for undergraduate and MBA students that serves as a recruitment tool for the French beauty conglomerate.
The team from China’s University of Business and Economics won first place in the undergraduate category, beating out Italy and Russia. In the MBA category, China snagged third place, trailing Spain and Brazil, whose team from Coppead took the top honors. A total of 4,500 students competed in the online competition, in which players make strategic decisions based on simulated but realistic market situations.
Since the program’s launch in 2000, L’Oréal has recruited 126 e-Strat players from 25 countries.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia