BERLIN — Negative foreign exchange rates and a difficult economic climate worldwide dampened the sales and profit performance of both the Wella and Beiersdorf Groups in the first half of 2002.
The Darmstadt-based Wella Group reported that sales rose 5.5 percent to $1.57 billion, but after adjustments for currency effects, sales would have grown 8.3 percent, the company said. All dollar figures are calculated from the euro at current exchange rates.
Earnings before interest and taxesdropped 4.9 percent to $111.1 million, but Wella emphasized this was "in line with expectations." A spokeswoman explained that operating profits or EBIT in the first half of 2001 were particularly high, due to key launches during the period, whereas in 2002, most key launches will be introduced in the third and fourth quarters. In addition, negative developments with the yen, dollar and Latin American currencies further affected earnings, she said.
For the six-month period, sales in the professional division were up 8.6 percent, cosmetics and fragrances sales grew 11.8 percent, but consumer sales declined due to "a continually bad situation in the German retail trade."
Weak conditions in the German market also helped boost the percentage of sales generated by exports, which now account for 73.8 percent of sales compared with 72.4 percent a year ago.
For the year as a whole, Wella said it "still expects sales growth of between 10 to 14 percent, based on unchanged foreign exchange rates."
In Hamburg, Beiersdorf reported a 3.3 percent rise in group sales for the period to $2.40 billion. For the first time, sales figures include sales by Florena Cosmetic GmbH, which Beiersdorf acquired in April. The resulting sales largely offset other special effects from 2001, such as the sale of the advanced wound care business, Beiersdorf pointed out.
Sales for Beiersdorf’s beauty or Cosmed division rose 6.1 percent to $1.62 billion, supported by innovations launched under the Nivea brand, the "world’s biggest personal care brand," according to Beiersdorf. Nivea hair care sales rose 10.9 percent in the period, Nivea deodorant 14.6 percent and Nivea for Men 20.6 percent.
EBIT were $254.8 million for the period, compared with $284.2 million in 2001. However, the 2001 EBIT figure includes $37.2 million generated by the sale of Beiersdorf’s wound care business during the first half of the year. Without this sum, EBIT for the first half of 2002 would have risen 3.3 percent.For 2002, Beiersdorf is now projecting a 6 percent sales increase for the Cosmed division compared to 8 percent the company had previously forecast. The firm plans to grow group sales by around 4 percent to $4.61 billion, somewhat less than the originally projected $4.66 billion.
While talk of a pending Beiersdorf sale has quieted down of late, a report in the French press ruled Unilever out of the acquisition race, saying that the firm claims Nivea products would be in direct competition with its Dove brand.
@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