Lauder Warns of Lower First-Quarter Profits NEW YORK — Anticipating softer sales in the Americas due to the expected negative impact of rising fuel costs on consumer spending, as well as other factors, the Estée Lauder Cos. Inc. warned that first-quarter earnings for fiscal 2006 will be "significantly below the same prior-year period."
The company said sales in the quarter are forecast to "grow in the low single digits in constant currency."
For the first half of the company's fiscal year, sales and earnings have both been revised.
Despite this, the company said that full-year sales and earnings guidance remains unchanged. At constant currency, the company is forecasting net sales to show a year-over-year gain of between 5.5 and 6.5 percent, with diluted earnings per share coming in at between $1.95 and $2.
"This full-year earnings per share estimate includes a slightly more than [14 cent] per share impact from expensing stock-based compensation, as well as a two [cent] to three cent per share estimated impact of potential store closures and/or business disruptions related to the merger of Federated Department Stores Inc. and the May Department Stores Co.," the Estée Lauder Cos. said in the statement, released late Monday afternoon.
Regarding first-quarter profits, the company said it has "recently been impacted by weakness at certain retailers," as well as "the general consumer response to higher oil and gas prices, softness in the Southeast region due to the effects of Hurricane Katrina and lower-than-expected sales from promotional programs."
As a result of these changes, first-half net sales for fiscal 2006 are now expected to grow between 5 and 6 percent (at constant currency), which compares with the company's prior guidance of a sales gain between 7 and 8 percent. First-half earnings are now pegged to be in the range of 87 cents to 92 cents, which compares with prior guidance of $1.03.
"The company believes that, with the product launches and programs in place for the fiscal second half, it will be able to recoup the expected first-half sales and earnings shortfall," the company said in the statement. — Arthur ZaczkiewiczMiller Harris Opens Boutique at Saks NEW YORK — Saks Fifth Avenue has teamed with British fragrance brand Miller Harris to open a 215-square-foot mini boutique on the main cosmetics floor of the retailer's Fifth Avenue flagship here.
The Miller Harris space, which was opened Thursday, consists of a crescent-shaped, dark-wood display case that sits behind a glass-topped, metal counter and chair. The concept, which showcases all 15 Miller Harris fragrances and the brand's full complement of 46 stockkeeping units — including body care, soaps and candles — was inspired by the look of Miller Harris' freestanding shop in London's Mayfair district, noted Christophe Michel, the brand's managing director.
The Saks space, which was developed over nine months, is the first of its kind for Miller Harris, whose distribution in the U.S. comprises about 20 doors, mainly specialty boutiques and apothecaries. Industry sources estimate Miller Harris' concept at Saks could generate at least $500,000 in sales volume during its first year.
"The [Miller Harris] brand brings a new lifestyle presence to the store," said Kate Oldham, Saks' vice president and divisional merchandise manager of cosmetic accessories and fragrances. She noted Miller Harris founder Lyn Harris' experience as a nose and her role in creating Miller Harris scents is a point of differentiation for the brand.
"This is a great opportunity for us in terms of exposure," said Michel. "It embodies the brand so much more than a single fragrance [would]."
A highlight of the space will be the brand's bespoke fragrance service, whereby customers will be able to work with Harris to concoct a fragrance of their liking for $10,000. The service, which is to include customized bottles, names and engravings, is slated to commence in February and will only be held at the Saks space.
Miller Harris plans to open a concept similar to the Saks space in Japan; to introduce new body lotions in the coming weeks, and to begin supplying an amenities line — including shampoo, conditioner, lotion, body wash and soap in two scents — to 44 Fairmont Resorts and Hotels locations starting in November. — Matthew W. Evans
@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