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Wella AG

This article was originally published in The Rose Sheet

Executive Summary

Slow sales growth anticipated for 1998, missing internal targets by 5% due to the international financial crisis, the firm announced Sept. 28. Unexpected developments in Russia and Asia, particularly Japan, as well as weak performances in Australia and New Zealand contributed to the slowdown, the company explained. Wella Japan is expected to post weak sales for the first time. The firm noted a drop in Japanese consumer demand and the decline in Wella sales in the country had been worsened by the 12% decrease in the value of the yen. Despite the negative currency effects on Wella's 1998 business results, the company anticipates 1999 currency factors are likely to have a positive impact on the company's performance and said its internal targets will be back on track

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