PARIS -- French beauty behemoth L'Oreal posted nearly a 20 percent increase in net profits in 2001, the 17th year in a row it had managed double-digit income growth.
It reported Thursday that net profits before capital gains and losses and after minority interests for 2001 were up 19.6 percent, to $1.07 billion, versus the prior year. All figures are converted from the euro at current exchange rates.
"Numerous brand-related initiatives combined with the strong momentum of international growth have compensated for the impact of world events," said Lindsay Owen-Jones, L'Oreal's chairman and chief executive officer, in a statement. "Robust internal growth, together with a further increase in profit margins, has enabled L'Oreal to enjoy a very good year in 2001 and to begin 2002 with confidence."
L'Oreal's adjusted operating profit increased by 12.7 percent, to $1.46 billion, in 2001, representing 12.1 percent of consolidated sales, versus 11.7 percent the previous year. The company said its margins improved due to a heightened focus on strategic brands, international expansion and on controlling industrial costs.
Adjusted operating profits for cosmetics reached $1.4 billion and for dermatology $54 million, representing 12 percent and 21.2 percent of total sales, respectively.
As reported, L'Oreal posted consolidated net sales for 2001 of $11.97 billion.
The company explained growth was bolstered by targeting new demographics, establishing a presence in new market segments and developing targeted products to meet local needs.
By geographic zone, sales in China grew by 26 percent; by 52 percent in Russia; by 27 percent in South Africa; 26 percent in Thailand; 21 percent in India, and 20 percent in Mexico.
L'Oreal said its most recent acquisitions, including Matrix, Carson and Kiehl's, "were very swiftly integrated in their respective divisions" and represented $457.2 million in sales, "in line with group forecasts." The company said the impact of the acquisitions is "positive, ahead of our objectives."
"For me, the numbers are in line at the net level, but a bit disappointing at the EBIT level for the second half of the year," said Jacques-Franck Dossin, a luxury goods analyst at Goldman Sachs in London."The company was reassuring that the growth model has not changed, that it will be similar for '02 versus '01 in terms of like-for-like sales growth, and that there will be some EBIT margin expansion."
L'Oreal shares closed up 1 percent Thursday, to $67.71, on the Paris Bourse.
“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
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast