AZUSA, Calif. — Third-quarter profits at Physicians Formula Holdings Inc. grew to $1.7 million, or 12 cents a diluted share, from $102,000, or a penny a share, in the same period a year ago because of tax benefits and a shift in timing of inventory returns.
The cosmetics firm, a leader in the bronzer market that produces mineral makeup and a brand called Organic Wear, registered sales of $20.3 million during the quarter ended Sept. 30, a 2.3 percent rise from $19.8 million in the year-ago period that was driven in part by a 30 percent increase in eye makeup sales.
Citing ACNielsen retail sales data, Physicians Formula said it held an 8 percent market share of the masstige market for the year ended Oct. 4, a category the firm defines as premium-priced products sold in the mass market. For the same period ended a year ago, the firm noted, its share of masstige was 7.7 percent.
“We have reached a new growth phase,” Ingrid Jackel, the firm’s chairman and chief executive officer said during a conference call with Wall Street analysts Monday, discussing a plan to revamp the firm’s marketing approach. Rather than marketing the brand item by item, the strategy will be to undertake “broader marketing initiatives,” according to Jackel.
For instance, in early 2009, the brand plans to unveil advertising with a new logo and imagery. Each advertising page is to have a claim and a response, she noted, and the tag line, “Your beauty, our passion, we promise.”
The firm’s gross margin improved 21.6 percent to $11.8 million, while operating income more than doubled.
Year to date, net income was up 21.7 percent to $4.7 million, or 32 cents a share, from $3.9 million, or 27 cents, in the first nine months of 2007. Sales grew 10.5 percent to $85.8 million, compared with $77.6 million last year.
“In light of the consumer environment,” said Jackel, “we’re pleased with results to date.”
The firm forecast that net sales for the full year would be between $120 million and $123 million, an 8 to 10 percent increase from 2007. Earnings per share are projected to be in the 52-cent to 57-cent range.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)