Sales & Earnings In Brief
This article was originally published in The Rose Sheet
Physicians Formula: Retailer destocking - to the point where retailers were ordering half of the number of pieces they did during the prior year - contributed to sales plunge in firm's first quarter of fiscal 2009, according to May 11 announcement. One of firm's largest retail customers announced in April it will no longer continue to sell Physicians Formula; retailer accounted for 16% of firm's gross sales in 2008. "We are obviously very disappointed with the decision made by this retail partner despite our strong performance and a long-term and very successful relationship. We are already taking actions to mitigate the impact of this decision including, but not limited to, reducing workforce levels, implementing cost controls, reducing capital expenditures, as well as re-evaluating various non-strategic marketing and administrative costs," Chairwoman and CEO Ingrid Jackel says. Sales were $20.2 mil. for the first quarter, compared with $42.7 mil. in the prior year. Firm is slowing its promotional activity to reduce costs. On the brighter side Mineral Wear makeup is gaining share in the masstige channel, and Physicians Formula bronzer and new eye makeup products have become best-sellers at retail, firm says
Sign in to continue reading.
New to HBW Insight?
Start a free trial today!
Register for our free email digests: