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.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)