Beauty Beat: Avon Issues Profit Warning for ’05 … Montblanc Looks to the Heavens … Boots Names Brent Marketing Director
Citing the negative impact of Hurricane Katrina, higher fuel costs affecting its representatives and customers and general weakness in international markets, Avon Products Inc. reduced its full-year 2005 earnings forecast.
Avon Issues Profit Warning for '05 NEW YORK — Citing the negative impact of Hurricane Katrina, higher fuel costs affecting its representatives and customers and general weakness in international markets, Avon Products Inc. reduced its full-year 2005 earnings forecast.
The $7.7 billion direct seller said it now expects full-year earnings — including previously announced tax benefits of 18 cents per share — to grow in the low to mid-single digits compared with prior-year earnings of $1.77 per share, which included tax benefits of 5 cents per share. Avon also expects full-year revenues to rise by mid-single digits, and operating profit for the year to be flat to down.
Avon's revision comes on the heels of the Estée Lauder Cos.' warning this week that due to rising fuel costs, as well as other factors, first-quarter earnings for 2006 will be "significantly below the same prior-year period."
Meanwhile, Avon chief executive officer Andrea Jung joined other business and political heavyweights — including Colin Powell, Richard Branson, Jack Welch, Rudy Giuliani and Terry Semel — speaking to hundreds of executives at the 2005 World Business Forum at Radio City Music Hall here last week.
And if The New York Times crossword puzzle is any indicator, Jung has made progress. "I'm a devoted crossword puzzle fan, and recently, for the first time, the four-letter word, second letter 'V' clue wasn't 'dingdong,'" she laughed. "It was, 'The company for women' And I thought, 'I've arrived!'"
Jung closed the conference with a discussion on women in leadership, a subject she said she dislikes, but feels passionate about.
"I can't wait until we no longer need these sorts of presentations," she said. Until then, however, she regaled the audience with statistics — today, only 8 percent of senior management positions are held by women and less than 1 percent of ceo's are women — and detailed how her company is encouraging more women leaders. Currently, her chief operating officer and half of the board are women. And the company has established a fast-track development system to bring women to more leadership positions.
Jung's other top priority is to bring Avon's products, and its mission, to new markets. India and China top the list, while the Middle East is a bit further down the road. "We want to go where women need us to help them become micro-entrepreneurs," she said. — Molly Prior and Amy S. Choi Montblanc Looks to the Heavens PARIS — Montblanc has created a celestial scent for men this fall.
The luxury writing instruments and timepiece brand introduced Starwalker this month, a fragrance that owes its name to the fountain pens of the same name. The scent is meant to encompass the brand's codes of "luxury, quality and refinement," according to executives at Procter & Gamble-owned Wella, Montblanc's beauty licensee.
Created by Franzrudolph Lehnert, Starwalker's bottle is a heavy glass flask topped with a metallic cap fashioned to look like the winder on a watch. Its juice, created by Michel Almairac of Robertet, has notes of bergamot, bamboo, ginger and amber. The eau de toilette will be available as 50- and 75-ml. sprays that are to retail for 45 euros and 59 euros, or $54.80 and $71.85 at current exchange rates, respectively.
Starwalker hit shelves in Montblanc stores this month and is slated to be rolled out internationally in October. Industry sources estimate the fragrance could ring up $15 million in wholesale volume in its first year. — Brid Costello
Boots Names Brent Marketing Director LONDON — U.K. beauty retailer and pharmacist Boots The Chemist has appointed Andrew Brent marketing director. Brent, who took up the position Monday, replaces Ian Hunter, who held the job for two years. Hunter will have a senior role in the Boots Retail International operation following a hand-over period with Brent, Boots stated.
Brent was recently chief marketing officer for Burger King in the U.K. His résumé also includes stints at A.S. Watson, where he was Asian regional director of marketing, as well as Procter & Gamble and Iceland Group. — B.C.
Donatella Versace will receive the International Award at the 2018 @cfda awards, which were announced tonight. Tap link in bio for a list of all the nominees and honorees. #wwdnews #wwdfashion (📷: @rahirezvanistudio )
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Exclusive: Guillaume Henry has left @ninaricci, the fashion house said on Thursday. “After three years of mutually gratifying creative collaboration, Nina Ricci and Guillaume Henry have together decided that the designer will depart the house after the presentation of the fall-winter 2018-19 collection,” Ricci said in a statement. Get all the details on WWD.com #wwdfashion (📷: @aitorrosasphoto)
“When Bella enters a room all heads turn,” said @peterphilipsmakeup, creative and image director for @diormakeup. Last night, the two celebrated the product launch of Dior’s Lacquer Plump in Los Angeles with other celebs like @parisjackson, @winnieharlow and more. Head to WWD.com to see the rest of the photos from the night (📷: @chelsealaurenla) #wwdeye
“These shirts are an art form, it’s about getting the message out to as many people as you can. It breaks down the pretentiousness of the art gallery,” says Kumasi Sadiki, cofounder of @ebayontheblock, a store that sells merchandise by New York artists who are shifting their attention to clothes as a wearable medium. Pictured here is a design by artist @joegarvey_, one of the first to spearhead this movement. Head to WWD.com to read @mistywhitesidell full story on how their designs have become merch for the underground elite #wwdfashion
@netaporter is dedicating a part of its website – called the Fine Jewelry and Watch Destination – to highlight its high-end jewelry. The hub will feature products on the site, as well as incorporate styling advice and educational content about high-priced jewelry items. Get more details on WWD.com. #wwdaccessories
For “The Cher Show,” an upcoming musical based on @cher’s life and career, @bobmackie is once again collaborating with the singer in designing the costumes. For decades, Mackie has designed glitzy stage costumes and red carpet looks for the 71-year-old Grammy winner. Pictured here is a sketch of some of the pieces in the wardrobe of the musical, which is set to debut in Chicago on June 12 before making its way to Broadway #wwdeye