Physicians Formula
This article was originally published in The Rose Sheet
Executive Summary
Firm booked $22.9 million in net sales for its fiscal 2008 second quarter, up 3.6% versus the prior-year period, according to August 11 release. Lackluster results reflect seasonally slower quarter, soft consumer retail environment and returns related to higher-priced promotional kits. Firm concludes that "in this economic environment consumers are more inclined to purchase lower-priced individual items compared to higher-priced promotional kits." Bare Escentuals noted a similar trend in reporting its second-quarter sales and earnings (1"The Rose Sheet" Aug. 11, 2008, In Brief). "We are already taking steps to revert to smaller and more traditional promotional events for 2009, which will enable us to minimize promotional returns as we have done historically," VP-Marketing Ingrid Jackel says. Net sales for first half of fiscal 2008 totaled $65.5 million, up 13.3% from the comparable period in 2007. Jackel said company is "generally satisfied with [its] business performance" and attributed 8% market-share gain to success of Mineral Wear line extensions, Shimmer Strips Custom Eye-Enhancing Shadow & Liner, and new Organic Wear offerings...
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