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.
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)