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 '05NEW 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 HeavensPARIS — 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 CostelloBoots Names Brent Marketing DirectorLONDON — 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.
“I grew up in New York but I hadn’t really experienced the city in any type of touristy way…This was probably the first museum I really explored and took the time to see,” said @haileybaldwin of the @whitneymuseum. On Tuesday night, Baldwin was joined by Jemima Kirke and more at the annual Whitney Museum Gala and Studio Party, which honored Lorna Simpson, Joanne Leonhardt Cassullo and Beth Rudin DeWoody. See more photos on WWD.com. #wwdeye (📷: @lexieblacklock)
Displayed starting this week at the @fashiontextilemuseum: An exhibition on designer @orlakiely titled “Orla Kiely: A Life in Pattern,” which spans two decades and contains more than 150 pieces. “I want people to come away loving pattern and print. It’s something that makes you feel so good,” said the designer during a preview of the exhibit. Also on show are mood boards, samples, sketches and more. Head to WWD.com to see more photos. #wwdfashion
Exclusive: @dsquared2 signs fragrance licensing agreement with Euroitalia, with the first effort of the new partnership being unveiled in September. The brand will launch two scents – one for men and one for women – in Italy. Read our interview with designer Dean and Dan Caten on WWD.com. #wwdbeauty #wwdnews (📷: @zefashioninsider)
@louisvuitton has officially renewed Nicolas Ghesquière’s contract as artistic director of women's collections. "I am very pleased to open the next chapter of the story I started with Louis Vuitton almost 5 years ago," said Ghesquière, who first signed on to design the French luxury brand's women's line in 2013. Get all the details on WWD.com. #wwdnews #wwdfashion (📷: @giovanni_giannoni_photo)
“I learned then and there that I had to figure out a way in life to maintain and preserve my sense of pride when I felt good about what I did or what I represented or created,” said @saintrecords on how being bullied for wearing capri pants inspired her to be the artist she is today. Knowles was at the 70th Parsons Benefit last night where she outbid the room for a Dapper Dan customized @gucci experience. #wwdeye (📷: @lexieblacklock)
“There’s this amazing braintrust of people who know the whole universe so well. So we talked to them and they gave us more input,” said actor Alden Ehrenreich on playing the young Han Solo in “Solo: A Star Wars Story.” The cast was at NYC’s SVA Theatre last night for an advanced screening of the film, which hits theaters this week. #wwdeye #starwars #hansolo (📷: @aurorarosedecrosta)
@asaprocky spent nearly two hours in a Plexiglas box Sunday night at @sothebys putting himself through a series of “tests” to demonstrate the process of completing his new album called “Testing.” Get all the details and see all the pictures on WWD.com. #wwdeye
“I’ve struggled my whole life to find a bathing suit that fits me that doesn’t look like a maternity bra. I’m proud of the line because it’s an accurate representation of me rather than me putting on someone else’s clothes,” says @atlantabean of her swimwear collaboration with @piaarrobio, LPA X ATL. The two decided on a swimwear collab and increased the industry standard size for the pieces. Read more about the line — and our interview with de Cadenet Taylor and Arrobio — on WWD.com #wwdfashion (📷: Dan Doperalski)