CCA Industries posts Q2 results, discontinues Gel Perfect brand
EAST RUTHERFORD, N.J. — CCA Industries, whose brands include Plus+White toothpastes and teeth whiteners, Nutra Nail nail care treatments and Scar Zone scar treatment, widened its net loss during second quarter 2014, and has pulled the plug on its Gel Perfect brand.
"The ugly performance in the first half of 2014 traces directly to the Gel Perfect color nail polish and the company's dietary supplement brand that has heavily weighed down the overall performance for the past 24 plus months. The company has discontinued the Gel Perfect brand as of the end of the second quarter, which is reflected on the company's consolidated statement of operations. Efforts are underway to mitigate the dietary supplement brand's future impact on the business,” stated Richard Kornhauser, CEO and president of CCA Industries.
Kornhauser added that, "The company's core brands, principally, Plus White, Sudden Change, Bikini Zone and Nutra Nail Treatments reaffirms the company's confidence that the restructuring effort and turnaround is on track.”
Net sales for all brands, other than the Gel Perfect and dietary supplement brands, during the second quarter totaled $10.56 million as compared to $8.67 million the same period in fiscal 2013, an increase of 21.7%, he stated.
“This is a result of very positive consumer response to our new brand advertising campaign (media and creative) with consumer sales up significantly for the second quarter versus the same period last year for the Plus White, Sudden Change and Bikini Zone brands. In our judgment, the results show that we continue to have products that meet consumer needs, respond to smart marketing and advertising efforts and, importantly, can deliver long-term shareholder value. These are the brands that we believe will drive our company's performance forward in a highly positive manner,” Kornhauser stated.
Net revenues during the quarter ended May 31 totaled $8.77 million compared with $10.68 million in the year-ago period.
The net loss widened to $4.14 million compared with a net loss of $156,836 in the year-ago period.
Butter London inks investment partnership with Encore Consumer Capital
SEATTLE — Indie beauty brand Butter London has announced that private equity investment firm Encore Consumer Capital has made a majority investment in the company and will form a partnership to help develop and market the Seattle-based brand.
Butter London was founded in 2005 by British entrepreneur Sasha Muir, who built the company into a high-design nail lacquer brand and is famed for pioneering "3 Free" nail care in the service sector.
"We are very excited to be working with Encore, who have a proven track record in growing brands into category leaders while maintaining the integrity and identity of the brand. This partnership will allow us to continue to bring the highest quality products to our customers with speed, quality and care," stated Leslie Freytag, Butter London president and CEO.
"We are excited to begin our partnership with the great team at Butter London to help build upon the brand's attractive and unique positioning in the prestige beauty industry," added Kevin Murphy, managing director at Encore Consumer Capital. "We look forward to supporting the company's introduction of great new products and engagement with its valued retailer partners to drive the brand's growth."
NRF calls for payment industry to adopt tokenization
WASHINGTON — The National Retail Federation, Retail Industry Leaders Association, Food Marketing Institute, Merchant Advisory Group, National Association of Convenience Stores, National Grocers Association, and National Restaurant Association are jointly calling for an open and universal tokenization standard in the U.S. payments system. The groups released a statement saying payment card data is currently vulnerable to theft where card information is swiped or entered, where card information is stored, and where it is transmitted.
The group is calling for payment industry stakeholders to adopt tokenization. Tokenization refers to the process of replacing sensitive account data and identity information with a unique token or symbol, making it less vulnerable to a security compromise. Tokens are randomly generated in a secure environment, like a coin vault, so that no data is stored or transmitted in an unsecure format.
“In order for the full benefits of tokenization technology to be realized by U.S. consumers and businesses, the standards for this technology must be created on an open platform that enables all technology providers to compete equally,” says the statement. “An open, interoperable platform will also ensure merchants can support the technology across multiple providers and make back-end security processes seamless for the customer experience.”
The statement also says tokenization will assist retailers in age verification identity checks, and storage and transmission of electronic health records and pharmacy prescriptions. Payment stakeholders are encouraged to participate in an accredited standards process, such as, but not limited to, the International Standards Organization or American National Standards Institute, to create, maintain, and coalesce around an open solution approach to payments security.
The statement concludes that solutions for tokenization should align with the following guiding principles:
1. Subscribe to an open standards approach through an accredited standards-setting body.
2. Create a technology neutral platform allowing broad participation in the standard from technology stakeholders.
3. Allow participants to develop proprietary frameworks that operate in adherence to the standard.
4. Ensure the standard works for multiple payment environments, including e-commerce and m-commerce.
5. Require that intellectual property, such as coin vaults and common technology applications, be governed by the industry standards.
6. Require the standard be supported by all networks, brands and payments types (credit, debit, prepaid, ACH, etc.).