Rush, Dream Angels, Incredible by Victoria’s Secret, VS Attractions,
Sexy Little Things, Very Sexy, Bombshell and Pink fragrances and VS
Bath & Body Works—The Coconuts, Carried Away, Country Chic
and Into the Wild signature fragrances.
The Limited seems to be back on target after corporate sales rose
11% in 2010 and net income soared 80%. In 2009, sales fell 4%.
Bath & Body Works’ sales rose 6% to just over $2.5 billion,
while Victoria’s Secret’s beauty sales increased 15%. The company credited the increase in Victoria’s Secret beauty to a compelling merchandise assortment that incorporated newness,
innovation and fashion.
Despite the good results, the company is making some tough
decisions in 2011 as it closes 1,000 international stores this year.
In a personnel move, Diane Neal, chief executive officer of
Bath & Body Works, will remain in that role through the end of
the summer and then transition into an advisory role with the
company from San Francisco. Nick Coe, formerly president of
Lands’End, will join BBW as its CEO.
As of Jan. 29, 2011, Limited Brands operated 2,968 stores, including 1,606 Bath & Body Works stores in the US (down from
1,627 stores in fiscal 2009) and 1,028 Victoria’s Secret stores in
the US (down from 1,040 a year ago).
Sales: $2.6 billion
$2.6 billion (estimated) for household cleaning and personal care
products. Corporate sales: $5.5 billion. Net income: $603 million
for the year ended June 30, 2010.
Don Knauss, chairman, president and chief executive officer;
Daniel J. Heinrich, executive vice president, chief financial officer;
Lawrence S. Peiros, executive vice president, chief operating officer;
Frank A. Tataseo, executive vice president, strategy and growth,
partnerships, away from home; Wayne L. Delker Ph.D., senior vice
president, chief innovation officer; Benno Dorer, senior vice pres-
ident, general manager, cleaning division; James Foster, senior vice
president, chief product supply officer; Jacqueline P. Kane, senior
vice president, human resources and corporate affairs; Grant J. La-
Montagne, senior vice president, chief customer officer; George C.
Roeth, senior vice president, general manager, specialty division;
Laura Stein, senior vice president and general counsel; Michael
Costello, vice president, general manager, international.
Cleaning—Clorox disinfecting wipes, Pine-Sol dilutable cleaners,
Clorox Clean-Up cleaner and Clorox bathroom cleaners; Personal
Care—Burt’s Bees natural personal care products.
Cleaning—Outdoor Fresh and Garden Fresh Pine-Sol, Clorox 2
Foaming Soil & Stain Remover, Clorox2 packs, Bleach Outdoor,
Lemon-to-Go wipes, Tilex Tile & Grout; Burt’s Bees—
Nourishing Lip Balm with Mango Butter and Rejuvenating Lip Balm
with Açai Berry, Spearmint Gel Natural Toothpaste.
Clorox holds several strong positions in the household and personal care market, but the company faces pressure from rising
commodity costs and private label competition. For the nine
months ended March 31, 2011, corporate sales slipped 1% to $3.7
billion, while net earnings dropped 10% to $388 million. During
the period, cleaning sales dropped about 1%.
Big brands drive Clorox, as 88% of the company’s portfolio is
made up of brands that are either No. 1 or No. 2 in their category.
According to SymphonyIRI data for the 52 weeks ended March
27, 2011, Clorox Wipes held a 51% share of its category, Clorox
Toilet Bowl cleaner, 37%; Pine-Sol, 30%; Tilex/Clorox 19%; Burt’s
Bees, 20% and Clorox Bleach, 64%. All of them are No. 1 in their
Still, not all is well for Clorox or other consumer product companies as commodity prices soar, forcing companies to raise prices
across their portfolios. Commodity costs are expected to double
to $170 million in fiscal 2012.
“We’re taking pricing [raising prices] broader and faster than
we’ve ever taken before,” Clorox chief operating officer Larry
Peiros said in an interview last month. “At the end of the day, we
know we will lose some volume due to pricing.”
The company recently raised prices 10% on Glad garbage
bags, and is talking to retailers about further increases. The higher
prices are expected to boost sales by four percentage points in
Clorox’s new fiscal year, which started July 1, but volume is seen
falling three percentage points as a result. Clorox still sees flat vol-
ume overall next year, recouping losses by selling more new prod-
ucts and by advertising. However, Bernstein & Co. has noted that
Clorox is the consumer product manufacturer most at risk from
consumers trading down to cheaper goods, especially in cate-
gories like cleaning products, trash bags and bleach. In general,
analysts are worried about consumer pushback. Clorox will try to
respond by offering more value to consumers, like Febreze-
scented Glad trash bags and new scents of Pine Sol cleaner.