A sales decline brought on by a slowdown in its direct-to-consumer business contributed to a drop in profits at Bare Escentuals Inc. in its second quarter.
In the three months ended June 28, profits at the San Francisco-based mineral cosmetics firm fell 20 percent to $19.8 million, or 21 cents a diluted share, from $24.7 million, or 26 cents a share, last year.
Net sales in the three months dropped 4.4 percent to $132.5 million from $138.5 million in the comparable 2008 period.
Analysts polled by Yahoo Finance had expected net income of 20 cents a share on revenues $130.9 million on average.
On a conference call with investors, chief executive officer Leslie Blodgett said the company was encouraged by its year-to-date performance, but it was taking steps to lessen the impact of the current environment.
“This includes working closely with our retailers to offer products and values that are compelling to our customers and moving quickly to control cost and improve efficiencies throughout the organization,” Blodgett said.
Compared with the prior-year period, North American retail sales grew 5.2 percent in the quarter to $77.9 million, while direct-to-consumer sales in the region declined 19.5 percent to $39 million.
“The TV shopping market is challenging and as such we saw lower year-over-year on-air productivity in the quarter,” said Myles McCormick, chief operating officer and chief financial officer, on the conference call.
International sales dropped 2.7 percent to $15.6 million in the quarter, largely due to currency fluctuations.
Selling, general and administrative expenses increased 10.8 percent to $56.2 million mainly because of occupancy and operating costs related to new boutiques, the company said.
Gross margins in the second quarter were up by 140 basis points to 73.2 percent of sales from 71.8 percent.
For the first six months of fiscal 2009, Bare Escentuals’ net income declined 27.8 percent to $36.5 million, or 39 cents a share, from $50.5 million, or 54 cents a share, last year.
Revenues in the two quarters fell 7.9 percent to $256.7 million from $278.9 million.
Shares of the cosmetics firm ended the session before its after-hours earnings announcement down 1 cent, or 0.1 percent, at $7.48.
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion
Eighty degree temperatures and outdoor installations at the annual Art Basel Miami Beach called for bright, elevated beachwear. See more street style pictures on WWD.com. #theyarewearing #ABMB (📷: @lifeinreverie)
Following September’s emotional tribute to her brother Gianni, Donatella Versace wanted to bring the spring show’s deep sense of intimacy to her @versace_official pre-fall collection. Donatella found inspiration in Versace Palazzo in Milan and from Gianni’s opulent apartment. Archival patterns and new motifs were splashed on silk shirtdresses and fitted jersey frocks. See the rest of the photos on WWD.com. #wwdfashion
Demna Gvasalia continues to shake up the Paris fashion calendar — and experiment with new runway timetables for his @vetements_official brand. WWD has learned that Vetements plans to stage its next coed show for the fall 2018 season on January 19 during Men’s Fashion Week in the French capital. Details about the timing and venue have not been confirmed — stay tuned on WWD.com to catch the latest. #wwdnews (📷: @giovanni_giannoni_photo)
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)