AZUSA, Calif. Physicians Formula Holdings has revised its full-year 2008 outlook in light of the current economy.
Since early November, the consumer environment has weakened at a faster pace than previously anticipated and tight inventory control by retailers reduced the expected pipeline order for new products, according to the beauty company.
As a result, Physicians Formula estimates that net sales for the fourth quarter will be between $27.1 million and $29.1 million, compared with net sales of $33.9 million for the year-ago period. Net income per diluted common share for the quarter is expected to be between 10 cents and 15 cents compared with 33 cents in the year-ago period.
For fiscal year 2008, net sales are expected to be between $112.9 million and $114.9 million, compared with net sales of $111.5 million in the year-ago period. Net income per diluted common share is expected to be between 43 cents and 48 cents compared with 60 cents in the year-ago period. The company’s previous fiscal year 2008 outlook for net sales was in the range of $120 million and $123 million and outlook for net income per diluted common share was between 52 cents and 57 cents.
The company expects to release on March 9 results for the fourth quarter and fiscal year ended Dec. 31.
“While we continue to anticipate a weak consumer environment throughout 2009, we are pleased with our new initiatives and product offerings as we believe they position us well to continue to grow our market share in 2009. Over the coming months, we will remain focused on the implementation of our new 2009 communication, promotional and merchandising strategies while developing, presenting and executing our 2010 plans. We continue to work on bringing a high level of innovation to the masstige segment in 2010 and beyond,” stated Ingrid Jackel, chairwoman and CEO of Physicians Formula.
The company noted that, based on retail sales data provided by ACNielsen, its approximate share of the masstige market was 8.1% for the 52 weeks ended Dec. 27 compared with 7.9% in the year-ago period, an increase of about 2.5%.