NEW YORK — Higher costs associated with its Sally Hansen products put a wrinkle in Del Laboratories’ third-quarter financial results.
This story first appeared in the November 10, 2003 issue of WWD. Subscribe Today.
For the three months ended Sept. 30, the Uniondale, N.Y.-based cosmetics maker said profits slid by 8.7 percent to $4.7 million, or 48 cents a diluted share, compared with $5.1 million, or 54 cents, in the same period last year. The company said the quarterly results were adversely impacted by higher advertising and display costs in support of its new Sally Hansen Healing Beauty product line of skin care makeup and its core Sally Hansen franchise.
Sales for the period rose 4.7 percent to $99.7 million from $95.2 million.
“We believe that our ability to increase our advertising and to make such a strong commitment to the brand will enable us to continue to build depth and breadth into one of the most successful brand names in our industry,” Dan Wassong, chairman, president and chief executive, said in a statement.
Del said Sally Hansen remains the number one brand in the mass market nail care category with a 26 percent share of market for the quarter, according to ACNielsen.
For the nine months, earnings decreased 4.9 percent to $13.9 million, or $1.45 a diluted share, including charges of $1.2 million recorded in the second and third quarters related to severance costs associated with the relocation of all Farmingdale, N.Y., manufacturing operations to Rocky Point, N.C. That compares with income in the like period of last year of $14.6 million, or $1.56, which includes an after-tax gain of $1.5 million, or 16 cents, from the sale of vacant land in February. Sales increased 8.4 percent to $291.1 million over $268.4 million.