PARIS — Groupe Clarins said Wednesday it has added Swarovski to its portfolio of beauty licenses.
Clarins' Thierry Mugler Parfums division will have responsibility for developing the worldwide beauty license for the Austrian crystal giant. It will develop fragrance, cosmetics and beauty accessories under the name Swarovski Beauty, with the first products slated to hit shelves in 2010. Financial terms of the 10-year deal were not disclosed.
The announcement confirms a report that appeared in these pages earlier this month.
News of the deal, however, was overshadowed somewhat by the report that 2007 net profits fell 59.4 percent versus 2006, to 90.7 million euros, or $124 million at average exchange. Clarins explained the drop is due to a tough comparison with 2006, when profits were bolstered by a one-off gain involving L'Occitane. Excluding that operation, 2007 net profits declined 1.7 percent year-on-year.
At 11.1 percent, the firm's operating margin, meanwhile, came in under the 13.2 percent reported at the end of 2006. The firm stated this is a result of unfavorable foreign exchange trends, which impacted sales and manufacturing costs; the increased share of its new makeup collections in its product mix, which incurred higher production costs, as well as significant marketing investments to support its brands.
Clarins' 2007 operating profit declined 12.5 percent to 111.4 million euros, or $153 million. As reported, Clarins' 2007 sales grew 4.2 percent year-on-year to reach 1.01 billion euros, or $1.38 billion at average exchange.
The financial news underscored the importance of the deal with Swarovski, a global luxury brand, which posted 2007 sales of 2.56 billion euros, or $3.5 billion at average exchange. The agreement is part of Clarins' move to bolster its fragrance business, following another licensing deal with New York-based jewelry brand David Yurman in fall 2006.
"There are not many major brands still on the market [for beauty licenses]," said Joel Palix, president of Thierry Mugler Parfums, adding Swarovski is a fast-moving, dynamic business with multiple store openings and brand expansion plans in the works. "Swarovski is a new kind of brand [for Clarins], not inspired by fashion but from another origin, cut crystal.""We share the same values of respect, tradition, expertise, innovation and independence as Swarovski," stated Christian Courtin-Clarins, Clarins' chief executive officer.
Beauty isn't Swarovski's first departure from its cut-crystal origins. In recent years, executives have been pushing the brand into other activities, which now include jewelry, home decor and accessories.
"Swarovski's position in the luxury market today is the result of the company following the philosophy of our founder, who was also my great-great-grandfather: to continuously engage in new market challenges and in products that express the poetry of precision and create joy and emotion," stated Markus Langes-Swarovski, executive board member of Swarovski.
Swarovski Beauty products will be sold in Swarovski's 1,150 stores and concessions worldwide, as well as on its e-commerce sites and through selective distribution channels. "It will not be just another fragrance or makeup collection," said Langes-Swarovski, adding he admires Clarins' Thierry Mugler business. "Both markets are saturated, only interesting concepts are really successful."
"Our vision for Swarovski Beauty is to create an original luxury brand in a very crowded market," continued Palix, noting Thierry Mugler Parfums aims to tap Swarovski's notoriety in Asia, Central Europe, Italy and the U.K., as well as its strength in travel retail. He added that Thierry Mugler is especially strong in France and in the U.S.
EXCLUSIVE: Two and half months after John Targon, cofounder and codesigner of Baja East, was hired as creative director of the contemporary division at Marc Jacobs, he has left the company, WWD has learned. Marc Jacobs International, which is owned by LVMH Moët Hennessy Louis Vuitton, confirmed Targon’s departure in a statement: “John Targon is a talented designer and we appreciate the work he has done here. Ultimately working together did not make sense for the brand and we wish him the best.” Read the story by @jessiredale, link in bio. #wwdnews
@theluxurycollection is officially launching a collection, tapping Sofia Sanchez de Betak for the capsule. Over 30 styles will be featured in the Chufy x The Luxury Collection, debuting next month at Bergdorf Goodman, The Webster, FiveStory and more. De Betak, known as “@chufy,” drew inspiration for the collection from her trips to Japan in the past year #wwdfashion
@lhd, founder and CEO of @thewebster, has teamed up with @lebonmarcherivegauche for the European launch of her ready-to-wear line, LHD. The launch will come with an exclusive pop-up opening today that’s set to run through May 20. Located on the second floor, it carries her debut Miami-themed resort collection, launched in November as see-now-buy-now. #wwdfashion
@longchamp, which marks its 70th anniversary this year, just opened its biggest U.S. store on Manhattan’s Fifth Avenue. On the lower level there’s a floor-to-ceiling display of the brand’s iconic Le Pliage bag – in all of its different colors, shapes and sizes. Customers can also have their product personalized in-store by imprinting names, initials or emblems. #wwdfashion (📷: @ericmtownsend)
“Whenever I’m in that place of sound and music, I don’t have fear or nervousness…This album has a lot of themes of courage and boldness and I want to be the soundtrack for people’s lives. I’ll be so happy if [my songs] evoke strength in people, which I know music has done for me,” says @kimbramusic of her newest album “Primal Heart.” The New Zealand-born singer sat down with WWD to talk about her music, newest tour and connecting with hear fans — read more on WWD.com #wwdeye (📷: @jilliansollazzo)
Luxury handbag resale company @rebagofficial is planning to sell a rare collectible for $70,000: the @hermes White Crocodile Himalayan Birkin. The exclusive Birkin sold for about $100,000 in 2008, when @davidbeckham bought one for his wife @victoriabeckham to add to her collection. Read more about the rare Birkin on WWD.com #wwdaccessories
With her costume pearl necklace and what-you-see-is-what-you-get style, Barbara Bush, who died Tuesday at age 92, was a straight-shooter from start to finish.
Born Barbara Pierce in New York City, Bush served as the 37th first lady, as well as the country’s second lady from 1981 to 1989. In addition to being part of the longest presidential marriage — 73 years — Bush also had the unlikely distinction of having one son, George W., become the 43rd president and another son, Jeb, run unsuccessfully in 2016. Having served as second lady during the Reagan administration’s two terms and lived all over the world during her own husband’s ascending political career, Barbara Bush made it clear that literacy — not fashion — was her priority. Read more from Rosemary Feitelberg’s obituary on the late First Lady in WWD.com, link in bio. #barbarabush #wwdnews
Western and ’90s trends have influenced denim for fall 2018. Think raw, dark and coated jeans mixed with bold prints and tough leather. #trendtuesdays #wwdfashion (Styled by @thealexbadia;📷: @ryanplett)