Physicians Formula Holdings, Inc. posted a drop its preliminary net sales for the three months and fiscal year ended Dec. 31, 2008. The company noted that since early November 2008, the consumer environment has weakened at a faster pace than previously anticipated and tight inventory control by retailers reduced the expected pipeline orders for new products.
As a result, shipments lagged retail sales for the fourth quarter of 2008. Net sales for the fourth quarter of 2008 are currently estimated to drop 2.5% to $27.1 million. Estimated net sales for the full year 2008 dropped 6% to $112.9 million. The company’s previous fiscal year 2008 outlook for net sales was $120 million.
Based on retail sales data provided by ACNielsen, the company’s approximate share of the so-called masstige market was 8.1% for the 52 weeks ended Dec. 27, 2008 compared to 7.9% for the same period in the prior year.
This represents a 2.5% increase in Physicians Formula’s share of the masstige market, or a 7% increase in dollar sales, compared to growth of 4% for the overall masstige market during this period.