Procter & Gamble is slashing prices at Gillette."The pricing changes deployed will vary from zero to more than 20 percent reductions…with a double-digit average reduction,"said Jon Moeller, P&G chief financial officer, speaking at the Consumer Analyst Group of New York conference on Thursday. The pricing change is slated for early April for consumers, Moeller noted."For the last two years we’ve been losing users in the mid and value tiers of the U.S. blades and razors business," Moeller said. The men's grooming business has recently faced new entrants to the market, including Dollar Shave Club (recently acquired by Unilever for a reported $1 billion) and Harry's.
"The company has been vocal about its intention to regain lost share in its midtier blades and razors business, but until today we’d been under the impression that this would be via innovation rather than a full capitulation on price," wrote Barclays analyst Lauren Lieberman in a note. "Importantly, while we would have thought that a decision this severe would be met with a targeted and specific cost savings plan so as to protect margins, the company was explicit that pricing actions will be dilutive to total company margins. We estimate that the U.S. blades [and] razor’s business is [about] 50 percent of global grooming sales ([about] 5 percent of total company sales) with gross margins in the 70 percent range, such that a -12 percent price reduction could cost overall gross margins [about] 40 [basis points] on an annual basis. In short, while we think this list price change could provide a temporary boost to volumes, over the long-term we do not think this will change the downward trajectory of P&G’s business — i.e., we think it will be very tough to switch users back from Dollar Shave Club [and] Harry’s."
P&G reported beauty net sales of $2.9 billion for its second quarter, down 1 percent year-over-year. SK-II, Pantene and Head & Shoulders all sold well, the company said. Moeller noted that Head & Shoulders now has more than $3 billion in annual sales. P&G recently closed the divestment of 41 beauty brands in an $11.6 billion sale to Coty Inc., and has simplified into 10 key categories with higher growth and profits than those it sold.
“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)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews