TOKYO — Shiseido Co., Ltd revised its net profits projection upward by 8.7 percent for fiscal 2004, partly as a result of a reduction in the amount it pays into its employee pension fund.
The extraordinary income deriving from the pension fund changes will be partially offset by expenses entailed in a group restructuring. As a result, projected net income will be $238.1 million, or 25 billion yen, which is $19.1 million, or 2 billion yen, higher than the previous forecast. For fiscal 2003, the cosmetics company earned consolidated net income of $233.3 million, or 24.5 billion yen. Dollar figures were converted at current exchange rate.
As a result of the pension fund change, Shiseido expects to record extraordinary income of approximately $254.3 million, or 26.7 billion yen, on a consolidated basis and $91.5 million, or 9.6 billion yen, on a non-consolidated basis for fiscal 2004.
While Shiseido boosted its earnings forecast, it revised its sales outlook downward to $5.95 billion, or 625 billion yen, which is $66.7 million, or 7 billion yen, lower than the previous estimate. These lower sales, compounded with prior investments, are expected to produce ordinary income of $333.3 million, or 35 billion yen, which is $57.1 million, or 6 billion yen, below the previous forecast.
Meanwhile, Shiseido and Coca-Cola (Japan) have jointly developed a new brand, “aroma works” under the common concept of “aroma.”
Based on the aroma theory of grapefruit scent, Shiseido will launch a body care lotion, “Body Stylish Mist,” while Coca-Cola (Japan) introduces diet water, “Body Style Water,” on April 21. Coca-Cola and Shiseido will leverage their marketing and sales capabilities for the promotion. Both products will be available in limited quantities in Japan only. — Koji Hirano
Vorwerk Gets Jafra
BERLIN — Vorwerk and Co. KG, Wuppertal has acquired 100 percent of Jafra Cosmetics, the California-based direct marketer of beauty products. New York private equity investment firm Clayton, Dubilier & Rice Inc. had possessed 84 percent of the firm. Terms of the deal were not disclosed.
More than 400,000 consultants sell the Jafra range of premium skin care and body care products, fragrances and color cosmetics in its main markets of Mexico and the U.S., as well as in Brazil, Argentina, Germany, Austria, Switzerland, the Netherlands, Italy and Thailand. Annual sales were placed at $400 million.CD&R bought Jafra, which was founded in 1956, from The Gillette Co. in 1998. Although Jafra was put on the block in 2002, CD&R then apparently changed its mind and completed a $290 million recapitalization of the brand in May 2003. In this five-year period, company profits increased 400 percent, CD&R said.
The 100-year-old Vorwerk Group is a global family enterprise. Its core business is the direct sales of high-quality household appliances, as well as industrial and financial services and carpets. In 2003, group sales reached $2 billion, 37.5 percent of which was generated by its direct sales activities.
Noting that cosmetics, fragrances and skin care products are the largest and fastest-growing direct sales segment worldwide, Vorwerk said the Jafra acquisition will boost group sales to $2.5 billion.
“The company’s corporate culture and its advisory-oriented sales approach using trained consultants to market Jafra’s high-quality, brand-name products all fit perfectly into Vorwerk’s corporate strategy,” Achim Schwanitz, managing partner of Vorwerk, said. He added that Jafra’s management team, lead by Jafra chairman and chief executive officer Ron Clark “will continue to lead the company as a separate entity within the Vorwerk Group.”
Jafra, which started as a family company, was created by Jan and Frank Day, out of their home in Malibu, Calif., with a mission of providing career opportunities for women while still being able to focus on their families. The company continues to place an emphasis on women’s empowerment today. — Melissa Drier
PARIS — Lancaster Group, the prestige division of Coty Inc., was the official sponsor of the International Forum of Cinema & Literature, which took place in Monaco, the company’s birthplace, from March 25-28. Among the attendees were authors Mary Higgins Clark and William Kennedy.
At the event, the Lancaster prize for best European film adapted from a novel went to Yann Moix for “Podium.” This was the third consecutive year Lancaster sponsored the event.
PARIS — L’Oréal Professionnel and the Paris-based architecture school L’Ecole Camondo jointly hosted a contest in which students were asked to design a hair salon of the future with an emphasis on its selling space.Four groups of winners were recognized for their work: Two teams won the “coherency prize”; one got the “innovation prize,” and a fourth was awarded the “anticipation prize.”
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty