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Parlux Private Bid Rescinded NEW YORK — Ilia Lekach, chairman, president and chief executive officer of Parlux Fragrances Inc., has rescinded his bid to take the company private, stating the beauty firm has "received several significant offers from third parties to acquire certain of its brands."In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.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews