Actor Hugh Jackman launches sun care line for children
NEW YORK — Actor Hugh Jackman and his business partner, Chris Clarke, have launched a new line of products called Pure Sun Defense.
“Sun protection wasn’t as prominent for my generation and it’s important we emphasize its value for the next,” stated Jackman, who was initially diagnosed with basal cell carcinoma in November 2013 and has since used his personal social media to emphasize the importance of wearing sunscreen. “I’m a father and want my children – all kids, really – to protect themselves against the health risk of skin cancer, since it’s so easy to do so.”
Pure Sun Defense has an opportunity to find a loyal audience in the sunscreen market: most of the leading sun protection brands have limited products designed for children and no single brand is marketing specifically to children ages 3 to 14, the demographic that is actually driving category growth and awareness, the company stated. Studies also show children under the age of 10 who don’t apply sunscreen are 50% more likely to develop skin cancer as adults, versus children who do.
Pure Sun Defense products, developed to appeal to kids through product quality and relevant packaging, are all:
- Broad Spectrum SPF 50 UVA/UBA protection and water-resistant
- PABA free, fragrance free and hypoallergenic
- Tested by dermatologists, pediatricians, and recommended by the Skin Cancer Foundation
- Made in America
The new products are available in a 6-oz. spray and 8-oz. tube with a suggested retail price of $5.98 each. They are sold at Walmart and Target nationwide.
To further engage children about the benefits of early sunscreen use, Pure Sun Defense forged partnerships with Marvel, Disney and Universal studios that bring favorite characters to sun care, including The Avengers, Spider-Man, Despicable Me, Frozen and Princesses.
Revlon CEO to analysts: ‘Fragrance segment will be a priority’
NEW YORK — Revlon, which posted a dip in net sales and a net loss during its first quarter, sees the fragrance segment as a significant opportunity for the brand, president and CEO Lorenzo Delpani told analysts during its recent first quarter conference call.
“In seeking opportunity for growth in the future, we are obviously keen to diversity our options for growth and also to diversify our risk,” Delphani, who took the helm in late 2013, told analysts. “And, therefore, we, after deep investigation, consider that being active in the fragrance segment is an opportunity for us.”
After investigating a platform for growth, Revlon set its sights on CBBeauty, a global fragrance management company based in the United Kingdom. The acquisition, announced May 1, also included the U.K. distributor, SAS & Co.
CBBeauty distributes and markets perfumes and beauty products under the One Direction brand in more than 80 countries around the world and provides international sales, marketing and strategic services to a select number of celebrity and fashion fragrance brands.
SAS & Co. distributes and markets perfumes and beauty products from a portfolio of such brands as Burberry, Carven, One Direction and Rihanna. SAS is also the fragrance licensee for U.K. artists such as Little Mix and Cheryl. CBBeauty and SAS will operate as an independently managed division within Revlon, under the continued leadership of Corrado Brondi as CEO of CBBeauty. Shelley Smyth will continue in this new division as CEO of SAS & Co.
“Now, the primary move for us is the one entering the fragrance license business. We believe that we have a competitive advantage in doing so and that is in the fact that, for the Revlon group, the fragrance segment will be a priority,” Delpani told analysts.
Delpani said that, going forward, Revlon will be “very selective” in the types of fragrances and licenses it will pursue. He also noted that the company is not going to focus solely on celebrity fragrances.
During the first quarter, total company net sales were $438.5 million compared with $469.8 million in the year-ago period on an as reported basis.
Consumer segment sales totaled $324.3 million for the quarter compared with $339.5 million in the year-ago period on an as reported basis.
During the quarter, Revlon swung to a $900,000 loss, or a loss of 2 cents per dilute share, compared with a gain of $5.5 million, or 11 cents per diluted share, in the year-ago period.
Coty to continue focus on ‘power brands’
NEW YORK — Coming off its third quarter, Coty executives remain optimistic about the future as it works to further drive growth of its power brands.
“While we already have several bright spots in the portfolio, more is to be done and now that we have created more space in the P&L through our efficiency programs, our objective is to reinvest part of these savings to steadily improve our growth track record across all our power brands and, as a consequence, on the total Coty business,” Bart Becht, chairman and interim CEO, told analysts during the company’s third quarter conference call.
Bright spots for the year, according to Becht, are Sally Hansen, Rimmel, Chloé, philosophy and Marc Jacobs, all of which continue to perform well thanks to innovations such as Sally Hansen Miracle Gel, Marc Jacobs’ Daisy Dream, Chloé Love Story and philosophy’s Renewed Hope in a jar.
Proving to be especially successful is the brand’s Sally Hansen Miracle Gel line, which has allowed Sally Hansen to reach its highest U.S. market share level since the company’s IPO. The success extends beyond the United States, with Sally Hansen now achieving the No. 1 nail brand position in several European markets such as the U.K., the Netherlands, and the Czech Republic.
“There are some competitors that are either in the market or coming into the market. It’s not very clear [if] they provide the same product benefit as Sally Hansen provides at this stage. So, we will continue to support clearly Miracle Gel, aggressively support it also going forward for a simple reason. The penetration and the trial levels on this product are still relatively low and so there’s still substantial opportunity for growth here,” Becht said.
During the quarter, color cosmetics net revenues increased 6% like-for-like. Adjusted operating income for color cosmetics increased 8% to $39.5 million from $36.7 million in the year-ago period.
Projected to further bolter Coty’s position in the global color cosmetics market is its recent acquisition of Bourjois cosmetics brand from Chanel.
“Bourjois is an attractive asset to us for a very simple reason, it’s a very strong brand [that] sits at the premier end of the color category compared to existing portfolio,” said Becht.
Meanwhile, the company continues to battle a drag in fragrances. Fragrance net revenues decreased 2% like-for-like, as incremental net revenues from new launches could not offset the decline from existing product lines. Adjusted operating income for fragrance increased 8% to $59 million.
“Within the non-power brands, however, there are some good brands and then there’s a set which I would call celebrity fragrances, which is largely a phenomenon which is dying out and that is the part which is posing the biggest issue from a drag point of view,” Becht told analysts. “It’s not so much the smaller brands that we have, which have a good following and loyalty. It’s hard to say, but, if you look at the celebrity fragrances part, it has a substantial drag because in a number of cases we’re seeing double-digit declines in some of these brands. So, it will work its way through the system.”
Becht added that, going forward, much of the focus will be on “how we’re going to accelerate growth across all of our power brands.”
During the quarter, net revenues totaled $933.8 million and were flat like-for-like and decreased 7% as reported.
Reported net income totaled $75.5 million compared with a loss of $253.3 million in the prior year, which included a one-time asset impairment charge.
Adjusted net income totaled $63 million, or 18 cents per share, compared with $86.7 million, or 22 cents per share, in the year-ago period.