NEW YORK — Stock of Maybelline Inc. tumbled Wednesday, following a statement by the company that it expects third-quarter earnings to fall to 25 cents a share, as compared to 36 cents a year ago.
Shares fell 5 7/8 to 18 3/4 on the New York Stock Exchange.
Maybelline attributed its forecast to slower-than-expected growth with its Revitalizing cosmetics and skin care brands and continued inventory reductions by retailers.
Gabriel D. Lowy, an analyst at Oppenheimer & Co., said he is cutting full-year earnings estimates to $1.20 from $1.55. Lowy also cut his 1995 estimate to $1.45 from $1.75.
The Revitalizing line, aimed at women over 35, was launched in 1993 and expanded this year.
Meanwhile, Wasserstein Perella Management Partners Inc. has cut its collective ownership stake in Maybelline to about 20 percent from 69 percent through a share distribution to three unnamed investment partners.
Randall J. Weisenberger, vice chairman of Maybelline, said he expects Maybelline stock may suffer in the short term as the new parties take ownership, but over time, the distribution will increase the number of shares available for trading, attracting more institutional investors and Wall Street coverage.
— Fairchild News Service