The Procter & Gamble Co.’s beauty business managed to overcome a dip in sales and drove first-quarter net profits up 5 percent to $690 million.
The segment’s net sales for the quarter ended Sept. 30 slipped 1 percent to $4.9 billion.
P&G’s organic beauty sales rose 1 percent in the quarter, which the company attributed to “innovation in hair care, deodorants, cosmetics and personal cleansing, coupled with market growth.” This growth was partially offset “by a decrease in skin-care sales and unfavorable geographic and product mix.”
Chief financial officer Jon Moeller told analysts on a conference call that the company was planning on “a heightened level of competitive promotional spending” to support product initiatives in beauty.
“We have a strong slate of initiatives coming to market December through March in beauty,” Moeller said. “The specifics are not items that we’ve disclosed yet, and we’ll do that as we get closer to the events themselves. But there is significant innovation coming.”
Beauty is also seeing “real progress on productivity,” the cfo said. “They’re working that as hard as anybody and are frankly doing a great job.”
Moeller acknowledged that the category was “very competitive” and that “we continue to have more work to do.”
Sales in the personal-cleansing business increased by a percentage in the high-single digits in the first quarter and Moeller said the cosmetics business was doing “extremely well.”
“We continue to need to make progress on North American Pantene, on Olay, and we need to make progress in our Salon Professional businesses,” he said. “Those are the strengths and the weaknesses, as it were, and we’re fully focused on maximizing the opportunity behind the strengths and addressing the opportunities.”
Overall, the consumer-products giant saw its net income rise 8 percent to $3.03 billion, or $1.04 a diluted share, as sales increased 2 percent to $21.21 billion in the quarter. Adjusted earnings of $1.05 a share met analyst estimates. The firm’s stock closed down 0.8 percent to $80 on Friday.
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
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion