PARIS -- The Benckiser Group, which owns the Lancaster Group beauty company, said Friday that net profits plummeted 60.8 percent last year to 33.1 million marks ($19.9 million) at current exchange.
Dr. Peter Harf, the chairman and chief executive officer of Benckiser, and the president of Lancaster Group, discussed the 1993 results at its annual financial meeting held Friday in Frankfurt.
He said that for 1994, the group, which is based in Ludwigshafen, Germany, is expecting profits to regain the 1992 level of $50.8 million (84.4 million marks).
Harf attributed the sharp drop in profits to high investment costs in sales and marketing for Benckiser's detergents in Eastern Europe, and for Lancaster products in the U.S., Canada, the U.K. and Australia.
Profits were also adversely affected due to restructuring costs for firing employees and other charges related to Harf's decision to move Lancaster corporate headquarters to New York earlier this year.
Other factors that depressed results included restructuring costs for other foreign subsidiaries and the currency devaluations in Spain and Italy.
Earlier this year, Benckiser announced that net sales increased 10.4 percent to $2.86 billion (4.76 billion marks) in 1993.
The U.S. emerged as Benckiser's biggest single market with sales last year of $722.89 million (1.2 billion marks).
Divisional sales by country were not broken out.
Sales for Lancaster grew 15.3 percent to $562.8 million (934.3 million marks) in 1993, with the U.S., Canadian, U.K. and Australian markets achieving roughly 200 percent growth.
Duty-free sales also jumped by about 50 percent, Harf noted.
Lancaster's growth was attributed mainly to intensified marketing efforts and to the successful launch of Lancaster's Skin Therapy treatment product.
Overall, the Lancaster Group accounted for 19.6 percent of total Benckiser sales, compared to 18.8 percent in 1992.
Benckiser's detergent division accounted for 53.8 percent of sales, while mass-market cosmetics and personal products represented 24.7 percent of sales, up 19 percent from 1992, due to the full-year consolidations of Coty Inc., which was acquired in 1992.
Sales were also consolidated on a full-year basis for the U.K.'s European Brands Group and the Netherlands' General Cosmetics Group.Looking forward, Benckiser is expecting that 1994 sales will grow 6 percent by year-end. First-quarter sales for this year rose 6.8 percent, Harf said.
While the firm is not planning any acquisitions in the near term, Harf said it would not pass up "promising opportunities should they present themselves, especially in East Asia."
“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)