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Coty posts fiscal 2013 results

BY Antoinette Alexander

NEW YORK — Coty Inc. reported on Tuesday a boost in fiscal 2013 new revenues, thanks in part to growth in its fragrance and color cosmetics segments.

Net revenues for fiscal 2013 totaled $4.6 billion, up 2% like-for-like and 1% as reported from the prior-year period. The like-for-like growth was driven, in part, by strong performances of its Rimmel, Marc Jacobs, Chloe and Playboy brands.

Net income increased to a gain of $168 million from a loss of $324.4 million in the year-ago period. Adjusted net income increased to $323.2 million from $300.7 million.

“Coty delivered another year of positive financial performance. Our increase in net revenues was driven by growth in our fragrances and color cosmetics segments as well as positive developments across all regions, particularly in emerging markets,” stated Michele Scannavini, CO of Coty. “Operating and net income grew faster than revenues, contributing to margin expansion and demonstrating our ongoing focus on operational efficiency. We continue to show strong ability to convert earnings into cash, enabling us to keep investing to support our growth. We remain committed to our long term strategy to grow revenues in line or faster than the markets and segments where we compete, and to grow earnings faster than sales, driving continuous margin expansion.”

In fragrance, operating income rose 9% to $369.7 million, resulting in 14.8% operating income margin, an improvement of 90 basis points versus fiscal 2012.

In color cosmetics, segment growth was driven primarily by the development of the Rimmel brand, gaining market share in the United States and Europe. N.Y.C. New York Color and Manhattan, the company’s entry price level brands, also contributed to growth of the segment. Meanwhile, nail care brands OPI and Sally Hansen remained stable versus last year, the company stated. Operating income in color cosmetics rose 4% to $208.8 million, resulting in 14.2% operating income margin, an improvement of 20 basis points compared with fiscal 2012.

For the fourth quarter, net revenues totaled $1.06 billion, up 4% like-for-like and 3% as reported. Adjusted net income totaled $9.9 million compared with a loss of $2.3 million in the year-ago period.

Looking ahead, however, Coty estimates net revenues in the first quarter to marginally decline versus the year-ago period because of a deceleration of market growth in the United States and Europe. This has triggered “significant trade de-stocking activity, particularly by U.S. mass retailers,” Coty stated.
 

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Retailers should get early start on holiday promotions this year, study finds

BY Alaric DeArment

CHICAGO — Sales of general merchandise are expected to increase by 2.4% during the holiday season of November and December, but shoppers will visit fewer stores, according to a new forecast.

ShopperTrak, a Chicago-based analytics firm, said that retailers would have to work to earn their share of sales despite a predicted rise. The increase in sales forecasted for this year builds on the 3% increase seen in 2012 over 2011, according to the firm’s research, while the 1.4% decrease in shopper traffic is down from last year, while last year’s figures had increased by 2.5% over 2011. ShopperTrak measures retail store traffic in more than 60,000 locations around the world.

"Although the economy continues to recover slowly, consumers remain cautious about spending and are not ready to splurge," ShopperTrak founder Bill Martin said. "Even though online buying increases each year, brick-and-mortar sales remain retail’s largest profit opportunity. Retailers who deliver a seamless experience both in-store and at every customer touchpoint have the chance to capitalize and grab their share of wallet when shoppers visit the stores."

Retailers must also contend with a shorter shopping season as there will be 25 days between Black Friday, on Nov. 29, and Christmas, compared with 31 days last year. Hanukkah will start 11 days earlier this year than last year, taking place the day before Thanksgiving. According to ShopperTrak, while an early Hanukkah will not affect overall retail sales, it will shift the time some retailers anticipate traffic increases, and the firm expects promotions to start as early as the day after Halloween.

"Nobody can afford to procrastinate," Martin said. "Retailers must have their holiday marketing and operations ready to go when November begins, as consumers will be ready to take advantage of those deals."


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Hefty introduces new odor-control bags with Arm & Hammer

BY Jason Owen

LAKE FOREST, Ill. — Hefty announced on Tuesday a new trash bag with advanced odor-control, the company stated.

Hefty Ultimate with Arm & Hammer provides a trio of advanced technology to give the consumer everything needed in one bag. The Arm & Hammer patented odor-neutralizing technology helps eliminate kitchen odors. Hefty Ultimate bags come in scent-free, lavender and clean burst scents.

Hefty Ultimate bags are designed to reduce messes with a unique formulation of textured plastic providing more tear- and puncture-resistance than any other Hefty tall kitchen bag, as well as a silver patented elastic gripping drawstring that expands and retracts around the lid of the trash can preventing the bag from slipping down into the canister.

Hefty Ultimate Arm & Hammer tall kitchen bags are available now to ship to major retailers and will be on store shelves this Fall.


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