In Brief: Wella
This article was originally published in The Rose Sheet
Executive Summary
Wella: Gucci Envy generates approximately $52 mil. in sales ($1=DM 1.7286) during the fragrance's first year on the market, the company said. The women's scent, which made its debut in the U.S. in March, is expected to generate about $64 mil. in 1997 sales. Envy boosted revenues for Wella's Cosmetic and Scents division, which rose 5.1% in the nine months ended Sept. 30. Net sales for the company increased 11.2% to roughly $1.74 bil. Excluding the effects of divestitures, sales would have increased 13.4%, the German firm noted. The company exited the salon cosmetics business in September with the management buyout of its Paris-based salon company Rene Garraud S.A. ("The Rose Sheet" Sept. 8, In Brief). On constant exchange rates, sales would have risen 9%. Earnings through nine months jumped 26% to about $61 mil. Hair care product revenues within the Professional division climbed 3.8%, while hair care sales in the Retail division increased 11.5%. Within the Professional division, Woodland Hills, Calif.-based Sebastian experienced a 6%-8% sales increase, driven by European and Latin American markets. The company also acquired 100% of its Dzerzhinsk production facility, a Russian-German joint venture. The facility manufactures approximately 10 mil. units of Wella products a year...
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Marketing In Brief
ModiFace launches forecasting tool: Toronto-based virtual makeover firm introduces ShadeCast, a makeup sampling and forecasting tool based on behavioral tracking. ShadeCast is used in conjunction with iPhone application MakeUp, which allows consumers to virtually try on makeup in hundreds of shades from brands including Revlon, Cover Girl, Lancome and Clinique. ShadeCast offers 1,000 cosmetic shades from 40 brands and assigns a ShadeScore "to approximately position the [app's] hottest and most sampled color." ModiFace exec Nikkie Gatto likens the app to radio music playlists, helping consumers "looking to capture the current look, but also provide vital market intelligence to our retail channel partners," she says in Nov. 3 release. "The value of data to demonstrate the aggregate behavior will help the industry predict the latest trends and help cosmetic manufacturers better understand the color and products which most resonate with online and iPhone virtual makeover users," the company says