Bare Escentuals cuts guidance despite Q3 profit jump
"Cosmetics company Bare Escentuals Inc enjoyed a 12% profit boost in the third quarter, but lowered its fiscal year guidance.
During the quarter, profit climbed to $22.9m, or 25 cents per share, from $20.5m/22 cents, on the back of 3% revenue growth to $130.2m.
Bare Escentuals said however that the weakening economic climate was putting more pressure on consumers, causing it to cut its full-year forecast. It added that it is cutting costs in a bid to transform itself into a "leaner and more effective organisation."
Shiseido H1 profit soars but FY sales outlook cut on faltering economy"Japanese cosmetics company Shiseido has posted a strong H1 net profit increase despite sales edging down in the period, but the company cut its full-year sales outlook on the back of the troubled global economy.
Net profit in the period soared 55.3% to ¥20.1bn ($206.8m), due to a decline in the income tax rate, while operating profit was up 5.6%. Sales slipped 1% to ¥359.4m.
Domestic sales were down 4%, but there was a 4.7% growth in Europe and an 11% hike in Asia/Oceania. In the Americas, the company said that turnover was down 7.2%, hurt by currency translations.
"As concerns about global economic slowdown grow stronger with each passing day, business conditions surrounding the Shiseido Group in the second half of the fiscal year are expected to worsen, both in Japan and overseas," the company said.
It said it now predicted group sales to be ¥720bn from its earlier estimate of ¥730bn, while net profit forecasts remained unchanged at ¥36bn and its recurring profit estimate was revised upwards from ¥66bn to ¥67bn due to cost reduction, Jiji Press reported."
Summary: Cosmetics is the one main area we have not seen huge profit losses. Yet even thought these companies are doing better than others even they are downscaling.
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