PERFUMANIA LOSS: Perfumania Holdings Inc. posted net losses of $2 million, or 65 cents a diluted share, during the second fiscal quarter ended Aug. 2, compared with a loss of $413,000, or 14 cents, in the same period last year, the firm reported in a Securities and Exchange Commission filing this week. The widened losses were due to operating costs associated with new store openings — the firm operated an average of 320 stores during the most recent quarter, compared with 274 stores in the year-ago period. Quarterly sales were down 15.4 percent to $62.1 million, from $73.4 million a year ago, on a $16.7 million drop in wholesale sales to affiliates to $4.7 million. Retail sales, however, which accounted for the bulk of total revenues, rose 5.5 percent to $57.4 million. The results do not include performance of fragrance producer and distributor Model Reorg Inc., which, as previously reported, finalized a merger with Perfumania Holdings (at the time called E Com Ventures Inc.) in mid-August. Perfumania Holdings expects to file pro forma financial data for the combined companies in late October.
This story first appeared in the September 19, 2008 issue of WWD. Subscribe Today.
STAYING THE COURSE: Procter & Gamble Co.’s race toward innovation will not slow, as the economy continues to sputter, the company’s vice chair and chief financial officer Clayt Daley told investors during a presentation at the Bank of America 38th Annual Investment Conference on Tuesday. “The most important thing we can do is continue to lead innovation…that’s the best defense we have,” he said, citing Clairol Perfect 10 as an example of new technology that warrants a premium price point. Daley said the company expects energy and commodity costs to increase about $3 billion in fiscal 2009. To cover those costs, he said P&G would need to increase pricing about 3 percent around the world. Acknowledging the recent slide of the price of oil, he said, “If oil prices stay in the low $90s [a barrel], as they are today, then there clearly will be some benefit to our cost outlook.” He noted that P&G’s cost projections were based on the price of oil ranging between $110 to $120 a barrel. Year-to-date, the cost per barrel is about $115, he added.
BACK TO HER ROOTS: Beauty executive Kat Peeler has rejoined Maybelline New York-Garnier — in a new role — as senior vice president of marketing for Garnier Shampoo & Conditioners, Styling and Hair Color. Peeler left the division in February 2004 to join Soft Sheen Carson. During her tenure at the ethnic beauty division of L’Oréal, Peeler was responsible for both the Global and Domestic Marketing teams, managing the total brand portfolio. Peeler has been replaced by Glenn Baptiste.
GROWING AWARENESS: Australian makeup artist Napoleon Perdis expanded his brand’s distribution last month by bringing his color cosmetic business into 301 Ulta stores nationwide. As part of the new alliance, the company will offer free makeovers and consultations this fall with the Ulta beauty expert team at the new store in El Paso. Previously, his collection was available in four freestanding stores in California and 80 independent boutiques, in addition to online on napoleonperdis.com. In other Perdis news, Perdis has signed on to be the official makeup sponsor of the Academy of Television Arts & Sciences and the 60th Annual Primetime Emmy Awards, which airs on Sunday. At the event, the company will be giving out his Shooting Star pack, which includes some best-selling products including China Doll Color Veil, Lip Lacquer in Pink Patina and Long Black Mascara.