Henkel reports positive Q3, raises outlook
ROCKY HILL, Conn. — Third-quarter sales for Henkel rose 1.7% over the prior-year period, the company announced in its earnings release.
Third-quarter sales increased to 4.03 million euros (about $5.53 million). The company also said that after adjusting for foreign exchange, sales improved by 5.7%. Additionally, organic sales — which exclude the impact of foreign exchange and acquisitions/divestments — realized a 6.5% increase.
The company said the positive results were attributed to growth across the company’s three core businesses: the laundry and home care category achieved organic growth of 3.8% (driven by price increases); the cosmetics/toiletries business sector rose 5.6%, thanks to significant volume increases; and the adhesive technologies sector saw an 8.7% jump in organic sales, generated through both volume increases and implemented price increases.
"Henkel continued its solid performance in the third quarter. Despite the challenging market environment, we outperformed once again our relevant markets in terms of organic sales growth," Henkel CEO Kasper Rorsted said. "All our business sectors contributed to this growth, and with further double-digit increases in our growth regions, we improved their share to 43% of our total sales. Despite higher raw material prices, we managed to improve profitability in all our business sectors."
Based on the third-quarter results, Henkel raised its outlook. The company now expects an increase in organic sales of between 5% and 6% (compared with a previous outlook of around 5%) and a 10% increase of adjusted earnings per preferred share.
L’Oréal USA to acquire Pacific Bioscience Labs
NEW YORK and REDMOND, Wash. — L’Oréal USA has announced that it plans to acquire Pacific Bioscience Labs, the innovator of sonic skin care technology.
Established in 2001, PBL developed its patented technology, enabling a series of products under the Clarisonic brand that redefined consumers’ approach to skin care. These include the Clarisonic Classic, Clarisonic Mia, Clarisonic PLUS and PRO, and the Clarisonic Opal Sonic Infusion System.
PBL has grown rapidly since the Clarisonic launch in 2004. The company’s broad distribution network covers six diverse and interdependent channels: dermatologists and cosmetic surgeons, spas, prestige retail, e-tail, television shopping and Clarisonic.com. PBL has 300 employees and recently relocated to its new corporate headquarters and manufacturing facility in Redmond, Wash. This facility significantly increases production capacity of Clarisonic products, currently sold throughout the United States, as well as in the United Kingdom, Australia, Mexico, Canada and the Far East.
“This is a strategic acquisition for L’Oréal,” stated Frédéric Rozé, president and CEO of L’Oréal USA. “Devices are rapidly emerging globally as an important new skin care category. Clarisonic is successful and [is] the fast-growing premium brand in this segment. We think that together with PBL, we will create in Redmond an outstanding center of innovation for L’Oréal. Upon closing of the transaction, the Clarisonic brand will join the portfolio of L’Oréal Luxe and [will] benefit from its worldwide presence.”
The merger, subject to the approval of PBL’s shareholders and other closing conditions, is expected to close in December. PBL’s senior management team is expected to remain with L’Oréal USA.
The Cloudbreak Group, Isaac Mizrahi ink fragrance licensing deal
NEW YORK — Xcel Brands has signed an exclusive worldwide licensing agreement with The Cloudbreak Group to develop, manufacture and distribute fragrance, bath and body, home fragrance and other related beauty products for the Isaac Mizrahi New York brand.
The signature fragrance will debut in fall 2012, launching in finer department stores domestically and in multiple International markets.
"A woman gets all her mystery from the scent she wears. It precedes her and it is her calling card. I can’t wait to launch my first signature fragrance with The Cloudbreak Group,” stated Isaac Mizrahi, creative director of Xcel Brands.
Mizrahi has been a leader in the fashion industry for almost 30 years. Since his first collection in 1987, Mizrahi’s designs have come to stand for timeless, cosmopolitan style. In December 2009, Mizrahi launched his lifestyle collection, ISAACMIZRAHILIVE! on QVC. Under a design agreement with Liz Claiborne, Mizrahi also serves as the creative director of Liz Claiborne New York, a line sold exclusively on QVC. Previously, in 2003, Mizrahi pioneered the concept of high design for the mass retail sector with a partnership with Target.
In addition, he has had roles on "Project Runway All Stars" for Lifetime, "The Fashion Show" for Bravo and his own series for both Oxygen and the Style Network.