L'Oréal Sales Up in Half PARIS — L'Oréal's second-quarter 2006 sales rose 6 percent, to 3.84 billion euros, or $4.78 billion at average exchange, year-on-year.
For the first half ended June 30, the French beauty giant's sales hit 7.79 billion euros, or $9.58 billion, an 8.7 percent increase. The company said the net impact of changes in consolidation, mainly due to the purchase of Skinceuticals and Delial last summer, added 0.5 percent to the company's sales. Currency fluctuations boosted the business by 2.4 percent.
On a like-for-like basis, L'Oréal's first-half sales rose 5.8 percent.
"The increase of our sales up to the end of June is very encouraging and confirms the clear upturn in the group's growth, particularly in Western Europe," said Jean-Paul Agon, L'Oréal's chief executive officer, in a statement. "Furthermore, high growth rates have been recorded in the new markets, such as Latin America and Eastern Europe. The major launch programs and promotional activities scheduled for the second half-year should enable us to maintain this momentum. All these factors mean that we are very confident about the outlook for the 2006 results."
L'Oréal registered sales upticks around the world in the first half. In Western Europe, sales rose 3.9 percent, to 3.67 billion euros, or $4.52 billion; in North America, 9.5 percent, to 1.97 billion euros, or $2.42 billion; in Asia, 10.8 percent, to 740 million euros, or $910.9 million; in Latin America, 28 percent, to 481 million euros, or $592.1 million; in Eastern Europe, 26.7 percent, to 411 million euros, or $505.9 million, and in "other countries," 10.1 percent, to 365 million euros, or $449.3 million.
All L'Oréal's operational divisions posted gains, as well. Professional products sales increased 4.7 percent to 1.07 billion euros, or $1.32 billion; consumer products, 8.2 percent, to 4.08 billion euros, or $5.02 billion; luxury products, 9.4 percent, to 1.79 billion euros, or $2.2 billion, and active cosmetics, 16.6 percent, to 653 million euros, or $803.8 million. L'Oréal's dermatology business registered growth of 11.6 percent, to 152 million euros, or $187.1 million.
Parlux Private Bid Rescinded NEW YORK — Ilia Lekach, chairman, president and chief executive officer of Parlux Fragrances Inc., has rescinded his bid to take the company private, stating the beauty firm has "received several significant offers from third parties to acquire certain of its brands."In June, PF Acquisition Group, which is led by Lekach, made a $29-a-share buyout offer for the fragrance firm. Parlux responded soon after, stating that the offer had been reviewed by an independent committee of directors, which does "not believe it is prudent for Parlux to move forward to consider the transaction" until other conditions are met. In July 2005, Parlux had hired Citigroup Corp. and Oppenheimer & Co. Inc. to facilitate a sale of the company. As Lekach stated in his buyout offer, "This effort has not resulted in a qualified proposal from a third party."
In a statement issued Wednesday, Lekach, who is managing member of PF Acquisition, said, "The proposal to take the company private was intended to offer shareholders a premium over market value. This proposal triggered substantial interest in our activities that, if pursued after the company became private, could be misconstrued. To serve the best interests of all shareholders, I asked my associates to withdraw the proposal to allow management and the board of directors to collectively focus on the new offers in the best interest of all shareholders."
Parlux's fragrance portfolio includes Perry Ellis, Paris Hilton, Guess, Ocean Pacific, Gund and tennis stars Maria Sharapova and Andy Roddick. — Molly Prior
Revlon Unit Aims to Increase Loan NEW YORK — Revlon's subsidiary, Revlon Consumer Products Corp., is seeking to amend its bank credit agreement to increase its existing $700 million term loan by $75 million to cover "general corporate purposes," the company stated Wednesday.
Also, as previously announced, Revlon plans to conduct a further $75 million equity issuance in 2006 or early 2007, and to use the net proceeds to reduce Revlon Consumer Products Corp.'s debt. The company reiterated it has an existing $87 million line of credit from MacAndrews & Forbes, Ron Perelman's holding firm, which will remain available through the completion of the $75 million equity issuance.
Revlon's actions come two days after it stated its second quarter will be hurt by slower-than-expected sales of Vital Radiance, the beauty firm's new cosmetics brand for women over 50. As a result, several major retailers cut distribution of Vital Radiance from a number of their doors. The setback is expected to contribute significantly to a projected $55 million operating loss, $40 million of that anticipated from Vital Radiance, in the second quarter. — M.P.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews