Donna Karan beauty business
This article was originally published in The Rose Sheet
Executive Summary
Revenues for FY 1997 (ended Dec. 28) fell to $18.7 mil., compared to $43.7 mil. in the prior year, partially due to the wind- down of operations following the licensing agreement with Estee Lauder, Donna Karan announced March 23. The company took a $23.4 mil. charge related to the licensing deal for the year. In the fourth quarter, beauty business revenues were "negligible," compared to $20.1 mil. in the corresponding period of FY 1996. Consolidated revenues for the fashion house increased 4.2% to $638.7 mil. on a pro forma basis, assuming that Donna Karan's initial public offering (July 3, 1996) occurred on the first day of FY 1996. The company reported an $81.4 mil. loss compared to net income of $12.9 mil. the prior 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