MEMPHIS, Tenn.--Hurt by retail inventory cuts and sluggish sales in its Revitalizing brand, Maybelline Inc. reported third-quarter earnings dropped 42.7 percent to $3.7 million, or 25 cents a share, from $6.5 million, or 36 cents, a year ago.
Last month, analysts cut full-year estimates for Maybelline to between $1.15 and $1.25 from $1.60 after the company said third-quarter results would be substantially lower than expectations.
Third-quarter operating income for the mass-market cosmetics manufacturer fell 26.4 percent to $8.3 million from $11.3 million.
Total sales for the quarter ended Sept. 30 inched up 0.7 percent to $89.4 million from $88.8 million. Sales for Maybelline USA were down 4.1 percent to $70.7 million, while international sales jumped 44.6 percent to $12.2 million. Yardley North America sales dipped 2.3 percent to $6.5 million. Robert N. Hiatt, president and chief executive officer, blamed tough year-to-year comparisons for the weak sales in its Yardley North America division.
He said that during the latest quarter the company's domestic business was hurt by "lower-than-anticipated sales of the new Revitalizing brand and by continued retail inventory adjustments."
However, Hiatt added that the company remains committed to Revitalizing and to expansion of investment. He said Maybelline will not alter its longer-term objectives for the sake of improving shorter-term operating results.
--Fairchild News Service

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