Q1 SALES JUMP 14% AT ESTÉE LAUDER
This new Clinique product contributed to a rise in sales.
Fabrizio Freda, president and chief executive officer, said, “We had an excellent quarter and made a strong entrance into fiscal 2011 with solid, double- digit top and bottom line growth. ”
In skin care, across each region, the Estée Lauder brand had strong sales from the recent launches of Advanced Night Repair Eye Synchronized Complex and Hydrationist Maximum Moisture Crème and Lotion. Contributing to the increased sales were the successful recent launches of Even Better Clinical Dark Spot Corrector (pictured at right), Repairwear Laser Focus Wrinkle & UV Damage Corrector, All About Eyes Serum De- Puffing Night Massage and Youth Surge Night Age Decelerating Night Moisturizer from Clinique. The Regenerating Serum and The Eye Balm Intense, new products from La Mer, as well as other successful products from La Mer, also contributed incremental sales.
The majority of the sales increase came from the company’s makeup artist brands. Incremental sales from the inclusion of the Smashbox brand, which was acquired in July 2010, also contributed to the increase.
According to the company, the higher makeup sales reflected increases across a broad range of products, such as the recent launches of new Pure Color lip and eye products and Resilience Lift Extreme Radiant Lifting Makeup SPF 15 from Estée Lauder, as well as Acne Solutions Liquid Makeup and Redness Solutions Makeup SPF 15 from Clinique.
Net sales of fragrance products increased compared with the prior-year quarter. Incremental sales were generated from the recent launches of Pure DKNY, Estée Lauder Pleasures Bloom and Coach Poppy, as well as higher sales of Tom Ford and Jo Malone fragrances.
While the category benefited from incremental sales from expanded distribution, particularly outside the U.S., as well as from the recent launch of Control Force from Aveda, overall, hair care net sales decreased. These improvements were more than offset by lower net sales resulting from the reformulation and anticipated relaunch of Ojon brand products.
Net sales are forecasted to grow between 7-9% for the fiscal year, according to the company.
Q3 Gains at Yankee Candle
Yankee Holding Corp. and The Yankee Candle Company, Inc. posted favorable financial results for the third quarter ended Oct. 2, 2010. Sales for the third quarter jumped 4.1% to $175.8 million.
Sales in the company’s wholesale business increased 3.7% to $96.2 million, while retail sales rose 4.7% to $79.6 million. The company generated net income of $8.8 million for the third quarter of 2010 compared to a net loss of $700,000 a year ago.
For the nine months ended Oct. 2, 2010, retail sales increased 7.8% to $225 million, driven primarily by an increase in new stores opened after the third quarter of 2009 and an increase in comparable store sales, said the company. Wholesale sales increased 9.6% to $217.1 million.
Net Sales Rise 1.7% At Church & Dwight
Church & Dwight Co., Inc. reported that net sales for the third quarter ended Oct. 1, 2010 jumped 1.7% to $656.9 million. Net income for the quarter fell less than 1% to $69.5 million.
According to James R. Craigie, chairman and chief executive officer, new product launches such as Arm & Hammer Power Gel Laundry Detergent have been key contributors to the company’s growth this year.
He commented, “We are pleased with our third quarter business results in what continues to be a difficult economic and competitive environment. Despite unit declines in most of our categories, our domestic consumer business delivered unit share increases on six of our eight power brands. In September 2010, our aggregate domestic share in measured channels was the highest of the year. We expect to end the year with momentum in our major brands.”
Craigie added, “Our focus in 2010 continues to be on increasing unit market share growth for our products. In spite of weak consumer demand earlier in 2010, we are expecting full year unit market share to improve for around five to six of our eight power brands.
“We expect organic sales growth of approximately 3% in 2010 with volume contributing 5%, offset by price and product mix declines of approximately 2%.”