03.03.15
CCA Industries reported that sales fell less than 1% to nearly $5.5 million for the three months ended Nov. 30, 2014. Net losses rose less than 1% to $4.2 million, but company executives said that a multi-year effort that will be completed by the end of fiscal 2015 is starting to have an impact and that results in fiscal 2015 will start showing the positive effects of the restructuring plan.
Those plans include:
• Returning CCA's focus on leveraging smart marketing and advertising programs to drive its brands connection to its consumer base;
• Repositioning its Go to Market model from an internally, fixed cost approach to an outsourced, variable cost basis to more efficiently capture business dynamics;
• Reducing overhead expenses reflecting the shift to an outsourced model;
• Recapitalizing the company to help fund programs necessary to achieve near and longer-term plan goals;
• Restoring growth by concentrating efforts against its core business units (Plus White, Sudden Change Bikini Zone and Nutra Nail Nail Treatments); and
• Reducing spending in all areas that do not directly drive the brands' message to the consumer.
As a result of activating the above plan early in fiscal 2014, company executives insist that CCA has already become a far more productive and efficient consumer packaged goods platform—one that posted a 4.7% net sales increase in fiscal 2014 versus comparable net sales for the fiscal 2013 year while squeezing significant operating costs out of the system in 2014 versus 2013.
These reductions include, but are not limited to:
• Shipping costs reduced by $1,675,913 due to outsourcing to Emerson warehousing operations;
• Personnel costs reduced by $5,310,009 due to a reduction in workforce from 98 to 37;
• Sales commissions $538,505 lower by leveraging the scale of the Emerson Group;
• Health Insurance costs reduced by $701,170 as a result of the reduction on workforce;
• Travel, meals, and entertainment costs lower by $322,563; and
• Consulting costs reduced by $700,389 as a result of executing separation agreements with David Edell and Ira Berman.
Those plans include:
• Returning CCA's focus on leveraging smart marketing and advertising programs to drive its brands connection to its consumer base;
• Repositioning its Go to Market model from an internally, fixed cost approach to an outsourced, variable cost basis to more efficiently capture business dynamics;
• Reducing overhead expenses reflecting the shift to an outsourced model;
• Recapitalizing the company to help fund programs necessary to achieve near and longer-term plan goals;
• Restoring growth by concentrating efforts against its core business units (Plus White, Sudden Change Bikini Zone and Nutra Nail Nail Treatments); and
• Reducing spending in all areas that do not directly drive the brands' message to the consumer.
As a result of activating the above plan early in fiscal 2014, company executives insist that CCA has already become a far more productive and efficient consumer packaged goods platform—one that posted a 4.7% net sales increase in fiscal 2014 versus comparable net sales for the fiscal 2013 year while squeezing significant operating costs out of the system in 2014 versus 2013.
These reductions include, but are not limited to:
• Shipping costs reduced by $1,675,913 due to outsourcing to Emerson warehousing operations;
• Personnel costs reduced by $5,310,009 due to a reduction in workforce from 98 to 37;
• Sales commissions $538,505 lower by leveraging the scale of the Emerson Group;
• Health Insurance costs reduced by $701,170 as a result of the reduction on workforce;
• Travel, meals, and entertainment costs lower by $322,563; and
• Consulting costs reduced by $700,389 as a result of executing separation agreements with David Edell and Ira Berman.