The Procter & Gamble Co.’s beauty business managed to overcome a dip in sales and drove first-quarter net profits up 5 percent to $690 million.
The segment’s net sales for the quarter ended Sept. 30 slipped 1 percent to $4.9 billion.
P&G’s organic beauty sales rose 1 percent in the quarter, which the company attributed to “innovation in hair care, deodorants, cosmetics and personal cleansing, coupled with market growth.” This growth was partially offset “by a decrease in skin-care sales and unfavorable geographic and product mix.”
Chief financial officer Jon Moeller told analysts on a conference call that the company was planning on “a heightened level of competitive promotional spending” to support product initiatives in beauty.
“We have a strong slate of initiatives coming to market December through March in beauty,” Moeller said. “The specifics are not items that we’ve disclosed yet, and we’ll do that as we get closer to the events themselves. But there is significant innovation coming.”
Beauty is also seeing “real progress on productivity,” the cfo said. “They’re working that as hard as anybody and are frankly doing a great job.”
Moeller acknowledged that the category was “very competitive” and that “we continue to have more work to do.”
Sales in the personal-cleansing business increased by a percentage in the high-single digits in the first quarter and Moeller said the cosmetics business was doing “extremely well.”
“We continue to need to make progress on North American Pantene, on Olay, and we need to make progress in our Salon Professional businesses,” he said. “Those are the strengths and the weaknesses, as it were, and we’re fully focused on maximizing the opportunity behind the strengths and addressing the opportunities.”
Overall, the consumer-products giant saw its net income rise 8 percent to $3.03 billion, or $1.04 a diluted share, as sales increased 2 percent to $21.21 billion in the quarter. Adjusted earnings of $1.05 a share met analyst estimates. The firm’s stock closed down 0.8 percent to $80 on Friday.
“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