Drugstore.com
This article was originally published in The Rose Sheet
Executive Summary
Net sales jumped 38.3% to $34 mil. and net loss decreased from $54.7 mil. to $32.1 mil. in second quarter, e-tailer announces. Firm continues to slash marketing and sales costs, cutting spending 67.5% to $8.3 mil. in Q2; total expenses were down 22.5% to $63.3 mil. Co-marketing deal with Amazon.com is re-negotiated, "reducing minimum cash payments due under the agreement from $30 mil. to $9 mil." and changing termination date to June 25, 2002. Restructuring charges in order of $7.3 mil. incurred as result of forfeiture of cancelled lease deposit for new corporate office space negotiated in March. Marketing and sales expenses related to agreement totaled $4.6 mil. in second quarter, firm notes in 10Q filing. Retailer projects sales of $135 mil.-$145 mil. for year, compared to $110 mil. in fiscal 2000
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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