tives in excess of $200 million and $250
million, respectively, in 2010.
“Fueled by this success, we’re also
announcing that Avon will launch a
new restructuring program that will
target increasing levels of efficiency
and organizational effectiveness across
our global operations,” Mr. Cramb said.
“This reflects both our constant turnaround mentality and our determination to aggressively manage our cost
structure as we address the current
Avon said that the new restructuring program will focus on the compa-ny's global supply chain operations,
realigning certain local business support functions to a more regional basis
to drive increased efficiencies and
streamlining transaction-related services, including selective outsourcing.
Further details will be announced
when initiatives are finalized.
The company also noted that the
new restructuring program is targeted
to achieve annualized savings of
approximately $200 million upon full
implementation by 2012-2013. Avon
also said that the costs to implement
the upcoming initiatives are expected
to be in the range of $300-$400 million,
with implementation anticipated to
start in the second half of 2009.
Parlux Posts Rise in Sales
Paris and Jessica can still count fra-
grance as successful endeavors,
according to the most recent financial
report from Parlux. For the third quarter ended Dec. 31, 2008, net sales
increased 6% to $47.3 million.
Operating income rose 42% to $31.1
million, according to the company.
For the nine-months ended Dec. 31,
2008, net sales jumped 9% to $123 million. Operating income increased 43%
to $73.2 million.
Neil Katz, company chairman and
chief executive officer, said,
“Strategically, our focus on strengthening our position in U.S. department
stores has been a success. The strategy
has been expensive financially, with
committed advertising investments
that could not be reduced in a retail
environment that plummeted in late
2008. Additionally, the global economic
turmoil, compounded with a volatile
U.S. dollar, negatively impacted our
Slow Going at Yankee Candle
Yankee Candle is hoping that 2009 will
add a spark to the home fragrance
Revenue for the fourth quarter
ended Jan. 3, 2009 was $264.3 million,
a 7.2% decrease from the prior year
fourth quarter. According to the company, the decrease in revenue was a result
of the deteriorating economic environment, a decrease in sales in its home
specialty channel within its domestic
wholesale business (driven by the
bankruptcy of Linens-N-Things), and
to a lesser extent a decrease in retail
comparable store sales of 9.4%.
Retail sales rose 0.8% to $190.7 million. Wholesale sales dropped 22.9% to
As part of a restructuring that was
previously announced, the company
recorded a $12.4 million charge in the
fourth quarter of 2008.
Total revenue for the 2008 fiscal
year dropped 3.1% to $713.7 million.
Retail sales rose 0.6% to $410.3 million.
Wholesale sales figures slipped 7.8% to
At Physicians Formula
Physicians Formula Holdings, Inc. post-
ed a drop its preliminary net sales for
the three months and fiscal year ended
Dec. 31, 2008.
The company noted that since early
November 2008, the consumer environment has weakened at a faster pace
than previously anticipated and tight
inventory control by retailers reduced
the expected pipeline orders for new
As a result, shipments lagged retail
sales for the fourth quarter of 2008. Net
sales for the fourth quarter of 2008 are
currently estimated to drop 2.5% to
Estimated net sales for the full year
2008 dropped 6% to $112.9 million. The
company’s previous fiscal year 2008
outlook for net sales was $120 million.
Based on retail sales data provided
by ACNielsen, the company’s approximate share of the so-called masstige
market was 8.1% for the 52 weeks
ended Dec. 27, 2008 compared to 7.9%
for the same period in the prior year.
This represents a 2.5% increase in
Physicians Formula’s share of the
masstige market, or a 7% increase in
dollar sales, compared to growth of 4%
for the overall masstige market during
Inter Parfums Sees
A Rise and a Fall
Prestige perfumer Inter Parfums, Inc.
posted a 16% decline in net sales to
$100.6 million for the final quarter
ended Dec. 30, 2008. European-based
product sales dropped 14% to $83.4
million, while U.S.-based figures
slipped 24% to $17.2 million.
However, the company 2008’s net
sales were $446.3 million, up 15% from
the prior year.
Chairman Jean Madar noted, “For
2008, the three largest brands within
our European based operations all
showed strong growth in local currency
with Burberry up 10%, Lanvin up 17%
and Van Cleef & Arpels up 77%. Sales
by U.S.-based operations in 2008
included domestic sales of our first new
Brooks Brothers fragrance collection
and the international distribution of
Gap and Banana Republic personal
J&J’s Full Year 2008 Sales
Jump 4.3% to $63.7 Billion
Johnson & Johnson’s 2008 sales were
$63.7 billion, an increase of 4.3% over
2007. Operational growth was 1.9%,
with currency contributing 2.4%.
Domestic sales decreased 0.4%, while
international sales increased 9.7%,
reflecting operational growth of 4.6%.