TOP NOTES

LAUDER’S JACKPOT: The final numbers are in for the Estee Lauder Cos. initial public offering Nov. 16, and they make very good reading for the Lauder family.
After an underwriting discount of $1.43 a share, the family raised $365.5 million from the sale of 14.9 million shares. The biggest piece went to Ronald S. Lauder, chairman of the Clinique Laboratories and Estee Lauder International divisions. He sold 8,333,333 shares for $203.9 million. A Lauder trust sold 5.5 million shares for $135.1 million, and Leonard A. Lauder, chairman and chief executive officer, sold 1,041,667 shares for $25.6 million.
Originally, the trust had planned to sell 4,166,666 shares, but raised the number to 5.5 million to meet heavy demand from investors. Additionally, the company had planned to offer 434,784 shares, but underwriters were granted an option on another 2,296,468 shares at the offering price.
When the stock, which was offered at $26 a share, hit the market, the first trade on the New York Stock Exchange was at 32 1/2. The underwriters quickly exercised the option. The company raised $63.3 million after the underwriting discount and expenses of $3.8 million. In all, the public purchased about 15 percent of the outstanding shares, but the family will retain 97.5 percent of the voting rights.

DEJA VU: Tony Michaels, who has been senior vice president of marketing and advertising of the Biotherm division of Cosmair Inc. for the last year, will return to the post he held previously — senior vice president of creative services for Cosmair. The change will take effect Jan. 1, said Cosmair president Guy Peyrelongue, who denied reports that Michaels is leaving the company.

FACELIFT: Orlane has remodeled its skin care institute in Paris, located on Avenue Victor Hugo in the swanky 16th arrondissement. The 6,500-square-foot institute, with 15 treatment cabines, is decorated in Orlane’s signature silver and blue and has been fitted with the most up-to-date equipment, according to the firm’s president, Claude Ury.
“It’s a way for us to communicate our brand image, not a source of profits,” he said. The institute offers face and body treatments, manicures, pedicures, makeovers, waxing and tanning, and also has a hair salon.

A BIGGER MAC: Hong Kong devotees of MAC swarmed the counters of the trendy makeup line’s first Asia outlet when it opened Nov. 20 in the Seibu department store.
Customers stood three-deep, watching intently as makeup artists did makeovers in the new 650-square-foot shop. “Look how he used the brush and powder instead of eyeliner to get that soft effect,” said one, rushing over to check the brush display.
Frank Toskan, MAC’s creative director and co-founder, in town for the opening, said the line’s presentation is much the same on both sides of the Pacific.
“We decided we weren’t going to change anything about our way of doing business — mainly that we will continue to emphasize how to use the products instead of pushing the hard sell,” he said.
Although Toskan declined to comment on volume, industry sources said the MAC shop has been doing more than $25,000 a day since its opening.
In partnership with cosmetics giant EstAe Lauder Cos. for overseas distribution, Toskan is heading for Japan, Italy and France before Christmas to check on the next store openings. He insists that MAC will continue to do things its own way.
“We decided to sign with Estee Lauder because otherwise it would have taken 20 years to develop a distribution network,” he said. “Also, they have the structure to close off the MAC products moving via illegal channels.”

ACQUA’S ADVANCE: Acqua di Parma, a classic fragrance from the Thirties, just celebrated the first anniversary of its relaunch, tallying a volume of about 60,000 units, or roughly $1.25 million in retail sales.
The company’s marketing strategy is simple. According to Saverio Grazioli, business director of Acqua di Parma Srl in Rome, “We want to be present in the 2,000 chicest clothing boutiques around the world.” The company also targets exclusive perfumeries.
Since the scent’s relaunch, the company has expanded distribution from 65 doors to about 250 doors throughout Europe. In the U.S., the Diego Della Valle shoe stores carry Acqua di Parma, since Della Valle was one of three executives who helped relaunch the fragrance.

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