Physicians Formula’s Sales Rise 24%

• Physicians Formula Holdings, Inc. posted favorable financial results for the three months ended March 31, 2012. Net sales for the first quarter of 2012 rose 24% to $26.2 million. The net sales growth was driven by an increase in color cosmetics sales and expanded distribution of the skin care line. In addition, net sales were favorably impacted by a delay in the timing of various retail marketing programs. The company expects that these programs, which are accounted for as a contra-revenue item, will be implemented later in this fiscal year.

The company also noted that, in the food, drug and mass channel, its products achieved 9% point-of-sale dollar growth over the last 52 weeks versus the prior year period, whereas the overall masstige color cosmetics category only grew 7%, as reported by AC Nielsen. This made Physicians Formula the fastest-growing masstige color cosmetics brand in dollar sales among the major five masstige brands in food, drug and mass during this period.

Ingrid Jackel, chairwoman and CEO, stated, “We are pleased with our first quarter results, which exceeded both our top and bottom line expectations. Net sales growth was driven by better than expected demand of our color cosmetics products, as well as the planned distribution expansion of our skin care platform. Through the successful execution of our product and brand investment strategies, we have expanded our market share of the masstige category and maintained our retail sales momentum. We have returned our company to profitability by generating strong product performance while improving our financial discipline.”

Jackel continued, “During the quarter, our retail partners made the decision to shift certain marketing programs to later in the year. Overall, we expect our total marketing and brand investments to remain at originally planned levels for 2012.”