First Half of 2010 Favorable For Physicians Formula

Physicians Formula Holdings, Inc. posted mixed financial results for the three and six months ended June 30, 2010. Net sales fell 1.4% to $20.8 million for the second quarter of 2010. The company noted that the prior year period included $0.9 million of net sales to the customer that discontinued its products in the second quarter of last year. However, net sales for the first six months of 2010 increased 6.1% to $43.7 million.

Based on retail sales data provided by ACNielsen, the company’s approximate share of the masstige market was 6.7% for the 52 weeks ended June 12, 2010 compared to 7.9% for the same period in the prior year. This represents a 16% decline in dollar sales compared to a decline of 1% for the overall masstige market during this period, or a 15% decrease in the company’s share of the masstige market.

Ingrid Jackel, chairwoman and chief executive officer of Physicians Formula, noted, “Market share in the key strategic cosmetics segments of mineral makeup, bronzers, face powders, masstige eye makeup and natural organic eye makeup were all higher during the most recent 12 week period than they were during the last 52 week period, as measured by ACNielsen retail sales data ending June 12, 2010, excluding the sales to the customer that discontinued us in 2009. This suggests we are gaining share momentum in our strategic areas of focus, and this is being driven by the strong performance of our 2010 new products.”