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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.