Blyth Is Getting Bigger With Proper Nutrition
• Blyth Inc., known for marketing its home fragrances and decor through house parties, has completed the second phase of its acquisition of ViSalus Sciences.
The company said it now owns 57.5% of ViSalus Sciences, which sells weight management products, nutrition supplements and energy drinks through independent distributors.
“ViSalus is a 90 day fitness challenge that has resonated with consumers and distributors for its outstanding products, an industry-leading earning opportunity and a simple business model,” said Robert B. Goergen, Blyth’s chairman and chief executive officer. “Blyth is proud to partner with the ViSalus founders, management team and independent distributors as they create thousands of businesses across the country. Moreover, increasing our ownership in ViSalus furthers Blyth’s strategic focus on direct-to-consumer businesses.”
Blyth first invested in ViSalus in August 2008, acquiring a 43.6% stake for $13 million, according to a filing with the Securities and Exchange Commission. Financial details of the latest phase were not disclosed. Under the agreement, Blyth said it will be required to buy more of ViSalus’ stock in 2012 and 2013 if ViSalus meets predefined operating targets.
Inter Parfums ReportsA 12.4% Gain in 2010 Sales
• Inter Parfums, Inc. announced that net sales for 2010 increased 12.4% to $460.4 million. However, net sales for the fourth quarter of 2010 reached $112.5 million, off slightly from $112.9 million recorded in the fourth quarter of 2009.
On the subject of U.S.-based operations, Jean Madar, chairman and chief executive officer, pointed out, “As expected, following certain inventory shortfalls in the third quarter that pushed those shipments into the fourth quarter, sales were 2% ahead of the final quarter of 2009. Due to the more than 50% increase in sales through the first half of 2010, sales by U.S.-based operations for the year as a whole were 16.2% ahead of 2009.”
Looking forward, Madar continued, “Having previously reported on our prestige lineup for 2011, I am pleased to announce a new addition. To further strengthen the Burberry brand’s potential for sustained growth in the years ahead, following the creative and development phases initiated in early 2010, a major new women’s line will be launched in fall 2011.”
With respect to 2011 guidance, Russell Greenberg, executive vice president and chief financial officer, stated, “In light of this important worldwide launch plus the integration of existing fragrance lines under the Boucheron brand, we have raised guidance for 2011 sales to approximately $525 million, with resulting net income attributable to Inter Parfums, Inc. of approximately $30 million.”
Financial UpswingAt Yankee Candle
• The Yankee Candle Company posted favorable financial results for the fourth quarter and full year ended Jan. 1, 2011.
Sales for the fourth quarter of 2010 rose 6.3% to $291.6 million. Sales in the company’s wholesale business jumped 10.6% to $90.3 million, while retail sales climbed 4.6% to $201.3 million.
For fiscal 2010, total company sales increased 7.7% to $733.7 million. Retail sales rose 6.2% to $426.3 million, while wholesale sales jumped 9.9% to $307.4 million.
Sales Rise Almost 12%At Alberto Culver
• Alberto Culver Company posted results for its fourth quarter and fiscal year 2010 ended Sept. 30, 2010. For the fourth quarter, net sales increased 12.1% to $431.9 million.
In the U.S., sales increased 3.5% in the fourth quarter due to growth in TreSemme and Nexxus.
International sales on a reported basis increased 26.7%, as each international region generated organic sales growth, with Latin America and Canada being particularly strong.
For the fiscal year, net sales for the fiscal year increased 11.4% to $1.60 billion.
In September, the company entered into a definitive agreement in which Unilever will acquire all of the outstanding shares of Alberto Culver for $37.50 per share in cash, valuing the company at approximately $3.7 billion, as previously reported in Happi.
Physicians FormulaReports Flat 2010 Sales
• Physicians Formula’s 2010 net sales increased 0.9% to $78.5 million. The company noted that, when adjusting 2009 for sales to the customer that discontinued the company’s products in mid-2009, 2010 net sales would have increased 5.5% over the prior year. Its net income was $600,000.
Ingrid Jackel, chairwoman and chief executive officer, stated, “Our 2010 full year results were consistent with our expectations, and we are entering 2011 with good momentum. In 2010, we grew the top-line with our continuing customers, and also showed excellent cost control, particularly in reducing the expense of our product returns and obsolescence.”
For the fourth quarter, net sales slipped 8.1% to $20.5 million.
WD-40’s First QuarterSales Rise 4%
• WD-40 Company’s sales for the first quarter ended November 30, 2010 increased 4% to $80.9 million. Net income for the first quarter fell 4% to $9.1 million.
“We had a solid performance in the first quarter that reflects the hard work and focus we have put into our four strategic initiatives, and that continues to serve us well,” said Garry O. Ridge, WD-40 Company president and chief executive officer. “As it relates to the geographic expansion strategic initiative, we have been successful in building our base business across the globe and we have seen robust growth in many international markets, while maintaining our gross margins above our target of 50%.”
WD-40 said its focus on its multi-purpose strategic initiative delivered sales growth during the first quarter. The first quarter multi-purpose maintenance products sales, which include the WD-40, 3-In-One, and Blue Works brands, were $66.5 million, up 10%. However, the company’s home care and cleaning products sales, which include all other brands, fell 16% to $14.4 million.
Americas’ segment first quarter sales slipped 10% to $39.2 million. However, Europe segment sales in the first quarter rose 13% to $30.8 million. Asia-Pacific segment first quarter sales jumped 61% to $11.0 million.
Zep’s First QuarterSales Rise 24%
• Zep Inc.’s revenues for the first fiscal quarter ended Nov. 30, 2010 rose 24% to $157.4 million.
Zep said its first quarter fiscal 2011 sales performance benefited from $37 million of acquisition-related revenue. Organic growth through sales to customers in the automotive and food end markets was more than offset by volume declines in the company’s other end markets, the company said. For example, sales to customers accessed through the retail channel were down from the same period in the prior year for two reasons.
First, sales in the retail channel in the first quarter of fiscal 2010 benefited from promotions that were not expected to and that did not recur. Second, during fiscal 2010, the retail channel benefited from demand for sanitizer products in response to concerns regarding the H1N1 virus, according to Zep.
Also, customers accessed through Zep’s industrial and institutional end markets — most notably manufacturing, schools and government customers — continue to be negatively impacted by sustained high rates of unemployment and reduced government spending, the company stated in its financial release.
Price increases contributed $2.5 million in revenue during the first quarter of fiscal 2011. The increases were taken to offset continued increases in commodity costs, including D-limonene, which is used in a broad range of citrus-based cleaning and plumbing products, the company said.
“We are pleased with the financial and operational results we were able to achieve during the first quarter of fiscal 2011, particularly in light of the fact that organic sales growth, which we believe is adversely affected by sustained high unemployment, has not yet returned to the legacy business,” said John K. Morgan, chairman, president and chief executive officer. “With the Amrep, Waterbury and Niagara acquisitions, we are continuing to execute on a strategy to diversify our business into one that is better aligned with the overall markets we serve. These acquisitions enabled us to increase revenue by 24% in this fiscal year’s first quarter.”
First quarter fiscal 2011 adjusted net income was $5.9 million, an increase of $0.7 million, according to the company.
CCA Industries Reports SalesDecline of 5% in Q1
• Total revenues for the first quarter of 2011 at CCA Industries, Inc. fell 5% to $12.6 million, while net income slipped 6% to $343,105. However, its new chief executive officer said he remains optimistic about full year results for 2011.
“Under my watch as the new CEO, the company is revitalizing its marketing strategies for its core brands that will be implemented over the next year,” stated Dunnan Edell, president and CEO of CCA Industries. “We have a number of new product initiatives in the 2011 fiscal year that have generated some very positive response from our retail partners. We anticipate that those initiatives together with a reinvigorated media advertising program will lead to strengthening the sales and bottom line of our company over the course of the year.”
Erno Laszlo Gets a New Owner
• The RBS Special Opportunities Fund, managed by RBS Equity Finance has backed Charles Denton, former chief executive officer of Molton Brown, to acquire the iconic U.S. luxury skin care brand Erno Laszlo. The company was previously owned by Fox Paine, who bought the business in 2002.
Lindsey McMurray, head of RBS Equity Finance, said, “We’re delighted to be working with Charles in order to realize the full potential of this famous brand. Erno Laszlo is a unique luxury proposition with a discerning loyal following. We believe it is well positioned to take advantage of the growing demand for premium anti-aging products with proven
Denton said, “I’m incredibly excited about the partnership with RBS Equity Finance and our acquisition of this exceptional beauty brand. The extraordinary heritage and iconic status of Laszlo will provide a wonderful foundation as we seek to expand the business globally.”
Erno Laszlo introduced a pioneering skin care regime back in 1927. His unique philosophy was to create custom products which were specifically formulated to confront the signs of premature aging, environmental hazards and the stress of modern lifestyles.
RBS Equity Finance appointed Peter Williams, former CEO of Selfridges department store group, as chairman.