Sales & Earnings In Brief
This article was originally published in The Rose Sheet
Executive Summary
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
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People In Brief
Physicians Formula CFO resigns: Company appoints Jeff Berry interim CFO in place of Joseph Jaeger, who is resigning for family reasons, according to May 15 release. While acting as CFO, Berry will step down from the board of directors on which he has served since October 2007 as a member of the Audit Committee and chair of the Compensation Committee and the Corporate Governance and Nominating Committee. Previously Berry was treasurer and head of strategy and business development for Del Monte Foods, Physicians Formula notes. Announcement of changes comes four days after firm posted first-quarter sales of $20.2 mil., compared with $42.7 mil. in the prior-year period, due to significant retailer destocking (1"The Rose Sheet" May 18, 2009, p. 12). CEO and Chairwoman Ingrid Jackel states: "I have worked with Jeff over the last two years in his capacity as a board member, and he will bring a high level of strategic focus and financial acumen to our company as we navigate through these challenging economic times.
People In Brief
Physicians Formula CFO resigns: Company appoints Jeff Berry interim CFO in place of Joseph Jaeger, who is resigning for family reasons, according to May 15 release. While acting as CFO, Berry will step down from the board of directors on which he has served since October 2007 as a member of the Audit Committee and chair of the Compensation Committee and the Corporate Governance and Nominating Committee. Previously Berry was treasurer and head of strategy and business development for Del Monte Foods, Physicians Formula notes. Announcement of changes comes four days after firm posted first-quarter sales of $20.2 mil., compared with $42.7 mil. in the prior-year period, due to significant retailer destocking (1"The Rose Sheet" May 18, 2009, p. 12). CEO and Chairwoman Ingrid Jackel states: "I have worked with Jeff over the last two years in his capacity as a board member, and he will bring a high level of strategic focus and financial acumen to our company as we navigate through these challenging economic times.
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