Sales & Earnings In Brief

Alberto Culver Q3: U.S. sales increased 12.7% in the third quarter to $248.6 mil., driven by "effective marketing, promotional activity and shelf space gains in hair care," and recovery from supply chain disruptions, CEO James Marino reports during the firm's third quarter earnings call July 26. TRESemme sales grew double digits, benefiting from new products, while Nexxus also generated strong sales, the exec said. Alberto VO5 sales decreased due to distribution losses at a key customer. TRESemme and St. Ives fueled an increase in advertising spend, which advanced 20.1%; the firm boosted marketing in support of the recent acquisition of the Simple hair care brand in the UK (1"The Rose Sheet" Dec. 21, 2009). International sales advanced 29% to $169 mil., primarily reflecting foreign currency fluctuations, acquisitions and divestitures. Net sales for the quarter were $417.6 mil., up 18.8% over the prior year. Excluding foreign currency fluctuations and acquisitions and divestitures, sales increased 10.7%. Net earnings were up 69% to $47.2 mil

Alberto Culver Q3: U.S. sales increased 12.7% in the third quarter to $248.6 mil., driven by "effective marketing, promotional activity and shelf space gains in hair care," and recovery from supply chain disruptions, CEO James Marino reports during the firm's third quarter earnings call July 26. TRESemme sales grew double digits, benefiting from new products, while Nexxus also generated strong sales, the exec said. Alberto VO5 sales decreased due to distribution losses at a key customer. TRESemme and St. Ives fueled an increase in advertising spend, which advanced 20.1%; the firm boosted marketing in support of the recent acquisition of the Simple hair care brand in the UK (¹ (Also see "It's Simple: Alberto Culver Grows Skin-Care Portfolio In U.K. To Match Hair Biz" - HBW Insight, 21 Dec, 2009.)). International sales advanced 29% to $169 mil., primarily reflecting foreign currency fluctuations, acquisitions and divestitures. Net sales for the quarter were $417.6 mil., up 18.8% over the prior year. Excluding foreign currency fluctuations and acquisitions and divestitures, sales increased 10.7%. Net earnings were up 69% to $47.2 mil.

Avon earnings, sales up: Direct seller's beauty sales advanced 9% to $1.91 bil. in the second quarter, with growth in all categories including fragrance (up 16%), color cosmetics (12%), skin care (4%) and personal care (3%), company reported July 29. Sales in North America declined 6% to $546.4 mil. due in part to a decline in active representatives. In Latin America, Avon's biggest market, revenues were up 16% to $1.14 bil. The company boosted its ad spend in the period by 19%, or $97 mil., fueled by increases in Latin America. For the quarter, the company's net revenue advanced 8% to $2.7 bil. and net income was $168 mil. compared to $83 mil. in the prior year period, reflecting restructuring costs taken in the prior year.

LVMH perfumes and cosmetics profit soars: Revenue within LVMH's perfumes and cosmetics division in the first half of 2010 rose 12% to €1.4 bil. ($1.9 bil.), while profit in the segment jumped 50% over the same period last year to €181 mil. ($235 mil), firm says July 27. Perfumes and cosmetics benefitted from increased demand in Europe and North America, as well as growth in Asian markets. Christian Dior "star" lines contributed to brand's growth and success, specifically fragrances J'Adore , Miss Dior Cherie and Eau Sauvage , and cosmetics Diorskin Nude and Rouge Dior . Strong sales of scents Idylle and Orchidee Imperiale boosted Guerlain in the first half, while Ange ou Demon drove Parfums Givenchy . Sephora strengthened its position in all of its markets; the retailing segment reported revenue of €2.4 bil. ($3.1 bil.), up 14% from year-prior, and a 36% rise in profits to €176 mil. ($229 mil.)

Shiseido sees signs of North American recovery: Cosmetics sales in Europe and North America help sustain a recovery that began in the last quarter of 2009. In Japan, consumer sentiment in cosmetics "remained cool." Consolidated net sales for the quarter (Apr. 1 to June 30, 2010 for Japan, Jan. 1 to Mar. 31, 2010 for overseas subsidiaries, including the U.S.) rose 4.4% over the prior-year period to 145.8 bil. yen, or $1.68 bil. Global cosmetics sales were up 25.4%, while the firm posted a 53.6% increase in cosmetics sales in the Americas. The Americas accounted for 10% of net sales for the quarter, versus 6.9% in the previous period. The consolidation of Bare Escentuals , completed in March, contributed to a 0.9% decrease in operating income because of inventory market valuation, amortization of sales rights and amortization of good will.

Parlux net sales increase: Fragrance marketer announced net sales of $24.1 mil. for the quarter, up 2%. A June 30 earnings statement also reports net income of $232,000, compared to a loss of $2.5 mil. for the prior year period. Careful cost control and reduced operating expenses contributed. Parlux Chairman and CEO Frederick E. Purches noted sales were up "despite the inclusion of $11.8 mil. of Guess product sales in the prior year." The firm ceased selling Guess in December 2009. While Parlux expects the next two quarters "will be negatively impacted in comparison to the prior year, we anticipate growth in existing brands in this fiscal year." Parlux also holds licenses for Paris Hilton , Jessica Simpson and Kanye West .

GSK's U.S. consumer business slows: With U.S. Consumer Healthcare sales flat at $395 mil. in the second quarter of 2010, GlaxoSmithKline CEO Andrew Witty calls the U.S. consumer market "a pretty dull place at the moment." During a July 21 earnings call, the exec said OTC alli weight-loss and Nicorette smoking cessation products - and consumers moving to private label - are dragging the U.K. firm's U.S. performance. Sensodyne toothpaste was a bright spot, up 19% in the quarter, helping the global oral care sales grow 9% to $616 mil. GSK's overall sales for the April-June period were essentially flat at $10.53 bil. while first-half sales gained 7% to reach $22 bil.