By staff reporter, 20-Jan-2009

California-based Athena Cosmetics has launched a product designed for thinning hair following the release of its thickening eyelash conditioner.

 Elizabeth Arden Inc. and Estée Lauder Cos. cut their sales and earnings forecasts Friday and watched their stocks take a beating, as consumers — already buying fewer sweaters and handbags — begin to sacrifice their beauty regimens to the recession.

“The unprecedented global economic crisis produced one of the worst holiday seasons in decades,” Estée Lauder CEO William Lauder said. “Our business was no exception to the downturn in consumer spending.”

Although a mounting number of high-end brands, from Tiffany jewelry to Coach handbags, have recently reported disappointing holiday sales and issued pessimistic outlooks, some beauty-industry observers expected upscale makeup and skin-care products to hold their own, thinking consumers would resist scrimping on their appearance.

Whether shoppers are trading high-end department-store beauty products for lower-priced drug-store options or forgoing purchases altogether will be clearer next week, when mass-market beauty giants including Procter & Gamble Co., which makes Olay skin cream and CoverGirl cosmetics, and Alberto-Culver Co., owner of Tresemmé shampoo and St. Ives skin care, report earnings.

“Beauty is still holding up better than other categories, but nothing is recession-proof,” says Bill Chappell, a SunTrust Robinson Humphrey analyst. “Instead of buying their fifth and sixth tubes of lipstick, [consumers are] going to work down what’s already in their pocketbook.”

Estée Lauder, whose Clinique, MAC and namesake line dominate the beauty counters of U.S. department stores, expects sales for its fiscal second quarter, ended Dec. 31, to fall about 6% from a year earlier, down sharply from the 2% to 3% revenue gains previously forecast. Quarterly earnings per share are expected to range from 75 to 82 cents, the New York company said, down from its previous guidance of 97 cents to $1.05.

Warning of difficult sales trends in North America as well as in its foreign markets, Estée Lauder downgraded already-lowered expectations for the rest of its fiscal year, ending June 30. The company now expects earnings per share of $1.30 to $1.60, down from the lowered full-year guidance of $2.20 to $2.50 issued in October. Full-year sales are expected to be flat to down 3% from a year earlier, lower than its previous guidance of 3% to 5% sales gains.

The dismal outlook sent Estée Lauder’s share price down $2.92, or 10%, to $26.11 Friday on the New York Stock Exchange. Elizabeth Arden’s shares plunged 40%, or $4.50, to $7.06 on the Nasdaq stock market. The news sent other beauty companies’ share prices down, too. L’Oreal SA fell 6% to €53.81 ($71.51), Avon Products Inc. shares fell 8% to $20.25 and Revlon Inc. shares fell 3% to $6.21.

Elizabeth Arden, best known for its fragrances under its namesake, Elizabeth Taylor and Britney Spears brands, expects sales for the quarter ended Dec. 31 to fall 12.5% to 13.5% from a year earlier, while earnings per share for the period are expected to range between 57 cents and 61 cents. Earnings per share for its fiscal year ending June 30 are expected to range from 94 cents to $1.07, on sales down 4% to 5%.

2009-01-19

Alberto Culver’s St. Ives is celebrating Sundance Film Festival’s natural beauty on Park City’s Main Street, providing VIP’s an opportunity to relax and unwind with the St. Ives Sensory Spa & Gallery. The site features star spa treatments and an exclusive nature-inspired art exhibition by world-renowned artist Laurel True. Throughout the weekend, Laurel worked with Park City art students to create a special Mosaic piece to be donated to the Kimball Arts Center.

“We are thrilled to be back in Park City for the second year in a row. Park City’s natural beauty and the wonderful energy of the film festival are the ideal setting to showcase our products. And this year we are offering luxury exfoliating treatments from head to toe. We’re also pleased to be giving back to the community through our partnership with Laurel True,” said David Kroll, vice president of U.S. marketing for Alberto Culver.

Celebrity aesthetician Jillian Wright and the staff of New York City’s Glow Skin Spa are on hand to treat VIP guests, by appointment only, to 100% natural customized facials, body treatments and reflexology hand and foot treatments with select St. Ives products.

The four-day Sensory Spa & Gallery and Mosaic art exhibition will wrap on Jan. 21st, from 11 p.m. to 1 a.m., to celebrate the premiere of “Motherhood” starring Uma Thurman, Minnie Driver and Anthony Edwards.

As part of its Green Chemistry Initiative, the California Environmental Protection Agency (EPA) has published its six policy recommendations to strengthen the protection of public health. According to the agency, these policy recommendations can lead to a new consumer product economy. The following are the agency’s policy recommendations.   http://www.cosmeticsandtoiletries.com/formulating/category/natural/37714644.html

Personal care product companies and their retailers will be able to work with a computerised administration of excisable perfume and cosmetics goods within the EU in future following a decision by the EU Council of Ministers. It has approved a directive regulating a new computerised monitoring system for excised goods in all 27 EU member states. A council communiqué said: “The computerised system will offer a simplified, paperless environment for business and will facilitate more integrated and faster monitoring for the authorities.” A key aim of the new system is to detect excise duty fraud, which costs the EU millions of Euros annually.

NEW YORK (Jan. 14) Beginning next week, several high-end retailers will give away $175 million worth of free cosmetic products as part of a class action settlement.

Department stores such as Macy’s, Neiman Marcus, Saks Fifth Avenue and Nordstrom will give away beginning Jan. 20 free cosmetic products to shoppers who bought certain cosmetics between May 29, 1994 and July 16, 2003. No rainchecks will be issued and the give away will last for a maximum of seven days while supplies last.

Shoppers will be permitted to receive one product made from such cosmetic companies as Chanel, Estee Lauder Companies and L’Oreal USA.

The offer is part of an agreement to settle a suit filed in 2003. The suit alleges stores tried to limit sales and cut back on the amount of cosmetics in their inventory in an effort to keep prices and competition high.

For a list of retailers and the products set for distribution visit www.cosmeticssettlement.com.

The nonprofit Center for Science in the Public Interest objected today to a “midnight” attempt by the outgoing Bush Administration to institutionalize a Food and Drug Administration practice permitting so-called “qualified health claims” on food labels. Such claims can be based on flimsy scientific evidence. The FDA first began permitting them on food labels in 2002. Prior to the Bush years, such claims were only allowed on dietary supplements. An example of these claims would be,”Very limited and preliminary scientific research suggests that eating one-half to one cup of tomatoes and/or tomato sauce a week may reduce the risk of prostate cancer. FDA requires that the claim be followed by the statement, “The FDA concludes that there is little scientific evidence supporting this claim.”

Congress urged the FDA in last years appropriations bill to end the labeling policy for foods until a report from the Government Accountability Office on the issue was completed.

“Fortunately, the FDA action today is in the form of a ‘Guidance’ document that can, and should be immediately rescinded by the next FDA Commissioner,” stated Bruce Silverglade. “FDA’s own surveys show that consumers are misled by qualified health claims.”

The Draft Guidance

The Guidance

[Federal Register: January 16, 2009 (Volume 74, Number 11)]
[Notices]              
[Page 3059-3060]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16ja09-105]                        

———————————————————————–

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2007-D-0371 (formerly Docket No. 2007D-0125)]

Guidance for Industry: Evidence-Based Review System for the
Scientific Evaluation of Health Claims

AGENCY: Food and Drug Administration, HHS.

ACTION: Notice.

SUMMARY: The Food and Drug Administration (FDA) is announcing the availability of a guidance document entitled “Guidance for Industry: Evidence-Based Review System for the Scientific Evaluation of Health Claims.” This guidance outlines the agency’s approach to the review of the scientific evidence for health claims that meet the significant
scientific agreement standard (SSA) and qualified health claims.
Elsewhere in this issue of the Federal Register, FDA is announcing the withdrawal of the guidance documents entitled “Guidance for Industry and FDA: Interim Evidence-Based Ranking System for Scientific Data” and “Guidance for Industry: Significant Scientific Agreement in the Review of Health Claims for Conventional Foods and Dietary
Supplements.”

[Federal Register: January 16, 2009 (Volume 74, Number 11)]
[Notices]              
[Page 3060]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16ja09-106]                        

———————————————————————–

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-1999-D-0170] (formerly Docket No. 1999D-5424)

Guidance for Industry: Significant Scientific Agreement in the
Review of Health Claims for Conventional Foods and Dietary Supplements;
Withdrawal of Guidance

AGENCY:  Food and Drug Administration, HHS.

ACTION:  Notice; withdrawal.

———————————————————————–

SUMMARY:  The Food and Drug Administration (FDA) is announcing the
withdrawal of a guidance entitled “Guidance for Industry: Significant
Scientific Agreement in the Review of Health Claims for Conventional
Foods and Dietary Supplements,” that was issued December 1999.

DATES: The withdrawal is effective January 16, 2009.