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Beauty Earnings: Guess’ Fragrance Plan, Frutarom’s Merger and E.l.f.’s Project Unicorn

Beauty companies reported higher sales in quarterly reports on Wednesday, with Inter Parfums Inc., International Flavors and Fragrances and E.l.f. Cosmetics posting gains.
On earnings calls, Inter Parfums detailed its expansion of the recently acquired Guess license; IFF talked the $7.1 billion Frutarom merger, and E.l.f. plans to get more newness onto store shelves with an initiative it's calling Project Unicorn.
Inter Parfums Details Guess Fragrance Plan
Inter Parfums Inc. is working to reestablish the Guess fragrance business.
The company, which took over the license from Coty Inc. earlier this year, said it is in the process of procuring and starting to sell finished goods. Inter Parfums’ efforts center around Guess’ 1981 and 1981 Indigo fragrances, which each come in men’s and women’s, and include a significant push for the holiday season.
Inter Parfums has scheduled “major” shipments for September and October, executives said on the company’s earnings call Wednesday, and is gearing up for advertising and promotion efforts around the 1981 fragrances.
“Our worldwide distributor network is quite enthusiastic about Guess because they view it as a great American brand with huge brand recognition outside of the U.S.,” said Jean Madar, Inter Parfums chief executive officer and chairman. The business expects the fragrance to do well in Eastern and Western Europe, as well as in Asia. Russia is expected to be a particularly important market for Guess, as the brand is opening stores there, executives noted. For the fragrance, the goal is to be in the top 10 in the Russian market in two years.
In the second quarter, Guess posted a 51 percent increase in sales.
Broadly, Inter Parfums Inc.’s sales rose in both its U.S. and European segments for the second quarter. Net sales were up 15.7 percent to $149.4 million, while net income increased 61.6 percent to $10.9 million. Earnings per diluted share were up 59.1 percent, to 35 cents. Sales for European operations rose 8.3 percent to $115.6 million, and sales for the U.S. segment were up 50.8 percent to $33.8 million.
Inter Parfums’ largest brands — Jimmy Choo, Coach and Lanvin — made up most of the growth, gaining 8.2 percent, 98.5 percent and 7.1 percent, respectively. Coach’s growth was driven in part by the launch of Coach Floral, which propelled Coach into the top three brands in the business, according to Madar. The company also launched Jimmy Choo Man Blue. Montblanc had a 9.8 percent dip in sales for the quarter, offset by a 33 percent gain in the first quarter. Karl Lagerfeld, which recently changed its pricing strategy, posted a comparable sales upturn, the company said, because of Les Parfums Matières, a fragrance duo. Anna Sui fragrance sales did well in the quarter, due to solid performance in Asia.
In the coming months, Inter Parfums will launch Jimmy Choo Fever in the U.S. market in September, as well as Coach Platinum and Rochas Moustache, which are both men’s scents. Flight of Fancy Spirit from Anna Sui and Century, a new Dunhill pillar, will also launch. Abercrombie & Fitch is rolling out First Instinct Blue for women, and Hollister is launching a festival duo called Festival Vibes.
Inter Parfums is projecting 2018 net sales of $665 million with $1.59 in net income per diluted share.
IFF Expects to Close Frutarom Deal in Q4
International Flavors & Fragrances Inc. is on track to close the Frutarom merger this year — earlier than expected.
IFF, a supplier to the beauty and food industries, went through the details of the $7.1 billion Frutarom merger on its second-quarter earnings call Wednesday. The business plans to receive $3.1 billion in debt financing for the deal, executives said.
IFF’s chairman and chief executive officer Andreas Fibig stressed the companies’ complimentary capabilities on the call with Wall Street. IFF is planning to sell some of Frutarom’s offerings to its existing customers, for example, and Frutarom gives the business more access to small and midsized customers, which are growing faster than large ones, he noted.
“The categories we have now as a portfolio, as a combined company — or that we will have after closing — us the ability to move categories that have good and high growth rates, like natural colors, for example,” Fibig said.
IFF’s merger with Frutarom is expected to be completed in the fourth quarter.
For the second quarter, IFF posted a net sales gain of 5 percent, to $920 million in sales for the second quarter, with $99.1 million in net income, a 10 percent drop. The fragrance business brought in $469.5 million in sales, up 5 percent in the quarter. Growth was driven by Latin America and North America. Consumer fragrances were up 5 percent, driven by double-digit growth in hair care, as well as increases in toiletries, home care and fabric care. The ingredient side of the business was up 10 percent.
IFF’s net income for the quarter was $129.4, and earnings per share were $1.63. Earnings numbers were down slightly, affected by currency, the company said.
To Combat Slowing Sales Growth, E.l.f. Launches Project Unicorn
E.l.f. Cosmetics has put a plan in place to get new products on store shelves faster.
Called "Project Unicorn," the plan aims to switch up certain packaging elements for its products to maximize its shelf space in retailers and make sure that products it launches have room to fit on shelves. "This year, we didn't have an appropriate mix between new and items," Amin said on the company's earnings call Wednesday.
E.l.f. has seen a more dramatic deceleration in sales in the last eight to 10 weeks, according to Amin, which has prompted the company to take new actions, including Project Unicorn, but also to lower its fiscal guidance for the year. And while sales are down, E.l.f. remains the "most productive" beauty brand at Target and Walmart on a square-foot basis, Amin repeatedly said Wednesday.
In addition to Project Unicorn, E.l.f. plans to start spending on influencers for the first time. It had long had an influencer marketing program that included trips like Beautyscape, but hadn't historically paid influencers. The goal is to make sure the brand is "making enough of a voice" in a market with brands that are paying mega influencers for a bigger reach, executives said Wednesday.
E.l.f. posted a 6 percent gain in net sales for the quarter, to $59.1 million, driven by expansion in national retailers. Net income was down to $6.5 million. E.l.f. has expanded its space at Ulta Beauty with products that sit in Ulta's more general skin-care assortment, as well as through end caps at Rite Aid, executives said.
The business lowered its projections for 2018, and is forecasting net sales growth in the low-single digits, as well as net income between $28 million and $31 million.
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E.l.f. Weathers Sales Deceleration, Launches Project Unicorn

E.l.f. Cosmetics reported a 6 percent gain in sales for the second quarter, but has experienced a sales deceleration in recent weeks, according to chief executive officer Tarang Amin.
While it expects the deceleration to continue into the second half of the year, E.l.f. has launched several initiatives aimed at sparking growth. One, called Project Unicorn, includes changing some of the company's product packaging in order to get more new products on store shelves.
"By taking some things out of their boxes, we really allow our premium componentry and color to come through," Amin said. Project Unicorn extends into the actual products themselves, as well as to messaging on product shelves, Amin said. It also means talking more loudly about E.l.f.'s cruelty-free offering, which has not historically been the center of its brand messaging.
E.l.f. is also widening the scope of its influencer program. Previously, E.l.f. relied on unpaid microinfluencers and events like Beautyscape — a trip that includes the brand's core influencers — to drum up buzz, but that is no longer enough, Amin noted.
Going forward, E.l.f. does not expect to simply pay influencers to talk about the product, something Amin believes consumers can see straight through, but is open to revenue-sharing models with certain mega influencers. "We're pretty flexible in terms of how we might look into working with them," Amin said.
The brand also plans to "double down" on Beautyscape.
E.l.f. is facing increased competition not just from big influencers who are paid to talk about other brands, but from influencer brands themselves "distracting" from E.l.f.'s efforts, Amin said. "You get really big reach numbers so it's very hard to break through when you have that much of a megaphone from other brands," he added.
The initiatives come as E.l.f. has faced a deceleration that is mostly coming from mass retailers in the U.S., Amin said. The softening is partially because the company hasn't been able to get new products — which its customers are trained to expect frequently — onto store shelves.
For 2017, E.l.f. launched 128 new items and "only a fraction of those" were able to go into retailers' main planogram, Amin said. Some are going into mini fall resets, he added. "We hope to address that with Project Unicorn in the Spring 2019 resets, but if you miss a year in that way, it hurts you," he said.
Amin also reiterated E.L.F's openness to acquisitions — noting that the company was looking to buy NYX at the same time L'Oréal was — but that it was "never going to outbid L'Oréal."
Despite losing NYX, that is the sort of company E.l.f. would be looking to acquire, Amin said, as it has a complimentary customer base and E.l.f. could have used some of the capabilities it has built over the years to benefit the business.
For the quarter, E.l.f. posted $59.1 million in net sales, driven by expansion in national retailers. Net income was down to $6.5 million. For the six-month period ended June 30, E.l.f.'s net sales were up 7 percent, to $125 million, with net income of $11.9 million, a decrease from $12.8 million in the prior-year period.
E.l.f. has expanded its space at Ulta Beauty with products that sit in the retailer's general skin-care assortment, as well as through end caps at Rite Aid, executives said. The business is also in the process of expanding in Germany.
The company lowered its projections for 2018, and is forecasting net sales growth in the low single digits, as well as net income between $28 million and $31 million. Amin, who owns about 12 percent of E.l.f., said Wednesday he would purchase up to $500,000 of E.l.f. common stock.
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Charlotte Tilbury Will FINALLY Be Sold at Sephora

There are makeup artists, and then there's Charlotte Tilbury. A true definition of the word "mogul," Tilbury has done pretty much everything there is to do in this industry — she's worked with top celebrities from Kate Moss to Kylie Minogue, created campaigns for almost every major fashion house, and been awarded an MBE by freaking Queen Elizabeth for services to the beauty and cosmetics industry. Finally, after much clamoring, Tilbury launched her own brand in 2013. It's taken five years, but as of next month, you're about to see a whole lot more of the Charlotte Tilbury line. The UK-born brand will launch on Sephora.com on September 13 and be on shelves in 40 Sephora locations across the United States and Canada on September 14.

Tilbury first launched the brand at Selfridge's — in fact, it was the biggest launch Selfridges had ever seen —  and opened her flagship store in London in 2015. Since then, she's expanded to UK retailers like Harvey Nichols and Harrods. But in the U.S. (until now!) the brand was only sold at Bergdorf Goodman, Bloomingdales, and Nordstrom. A partnership with Sephora means the brand will be more accessible even to those of us who don't frequent department stores, and, more importantly, to those of us with VIB points.

The past five years have been a whirlwind of product innovations and sold out launches. She's made our skin look like the Snapchat "pretty" filter, introduced the world to the concept of a dry sheet mask, and sold out of her instantly iconic Bar of Gold highlighter more times than we can count. According to a release, Sephora will stock Tilbury's Superstar range, fan favorite Magic Cream, and her "latest collections and iconic products."

"I am SO thrilled to be extending my partnership with a brand who not only inspires fearlessness and empowerment in ALL but who also shares my passion, innovative spirit and mission to give everyone the confidence to achieve their dreams through the power and magic of makeup," Tilbury said in a statement. "For me, Sephora was a natural partnership because of the amazing synergy between our brands. Two revolutionary, beauty expert, tech-forward, rule-breaking, educational playgrounds, brands of firsts, coming together to share even more makeup magic with the world!!"

What Charlotte’s display will look like in Sephora stores

When Charlotte Tilbury decides to partner, she partners hard. The brand will also be available for virtual try-on as part of Sephora Visual Artist App, and you'll be able to find your exact shade match with Sephora Color iQ. Aside from the launch itself, there's a long, glam list of related events to pencil into your calendar ASAP. First of all, naturally, this all kicks off with a contest. The brand is asking beauty lovers to create a look using the Superstar product range and post the finished look to Instagram. The winner will be crowned by Charlotte herself on September 13 and featured on Sephora's Service Menu, which means your face could be featured at 40 Sephora stores. But game show voice that's not all. Tilbury herself will be on hand at Sephora 34th Street in NYC for a meet and greet. She's also curated a Tilbury Tour, in which the brand's pro-artist team will crisscross Canada and the U.S. offering mini-makeovers and "exciting in-store surprises." As of now, events are scheduled for September 15 at Sephora locations in Toronto, San Jose, Chicago, and Boston, and on September 16 in San Francisco. And one last thing: She's also releasing her newest Bar of Gold Palette exclusively at Sephora, before it lands in other retailers in October.

Set your calendar alerts for pretty much every day in early September, and get ready to shop your favorite Charlotte Tilbury products on sephora.com beginning September 13.

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Packaging Takes Center Stage at Cosmoprof North America

It is no longer compelling enough for beauty products to feature a trendy ingredient or bold pigment. To stand out on crowded shelves, brands today also have to be wrapped up in a compelling package.
Packaging took center stage at last week’s Cosmoprof North America (CPNA) event held at the Mandalay Bay Convention Center in Las Vegas. More than 40,000 attendees, an increase of 9 percent over last year, canvassed the 331,150-square-foot floor looking for not only environmentally friendly products, but those with Instagrammable qualities as well. Other notable trends were natural and organic lines; rituals inspired from Korea, Japan and India; fast beauty; men’s products; multicultural assortments; and technology in beauty.
“This year was the best event ever for Cosmoprof North America, with record-setting numbers and most of the key national retailers and distributors represented at the show eager to discover trends from the eight curated areas and the over 1,400 exhibitors present on the show floor,” said Daniela Ciocan, CPNA’s marketing director. Among the retailers that brands said they met with were Barneys New York, Macy’s, C.B. Bigelow, Nordstrom, Nordstrom Rack, Ulta Beauty, Walmart, QVC, Neiman Marcus and Detox Market. Paris Hilton, who is launching her own skin-care line, caused a stir when she whirled around the show floor on Sunday.
“We’ve been looking at the packaging area,” said mother and daughter Taylor and Jenny Frankel of Nudestix, who stopped by CPNA just prior to their line rolling out into the Middle East. “Sometimes a package sparks an idea and sometimes it is the other way around,” said Jenny Frankel.
Eyes were cast on two different needs in packaging — environmentally conscious, as illustrated by collapsible packages at Bulk Homme, and whimsical designs, exemplified by skin-care encased in watermelon designs from Purlisse.
The wattage at Swarovski’s booth was traffic-stopping, thanks to fingernails bedazzled with crystals. In the curated Discover Beauty area, a cleverly packaged portable razor with a compartment for spray, lather and a razor built into one called Sphynx nabbed attention. Nostalgic packaging from the Fifties helped a beauty accessories company called Vintage, sold in retailers including Ulta Beauty, JC Penney and Wegmans, stand out.
Ian Ginsberg, president of C.O. Bigelow Apothecaries, said packaging that takes up less space in landfills or is recyclable is gaining traction in the U.S. “As we are more and more concerned about packaging waste, even with recyclable material, I noticed a bunch of brands with collapsible packaging.” He said the practice, already in place in Europe, is gaining favor for body wash, lotion, shampoo and conditioners.
Stephanie Wissink, equities analyst with Jefferies, pinpointed packaging as the number-one topic at the three-day show. America is watching the European Union, which is headed toward mandatory implementation by consumer products industries of 100 percent recyclable packaging by 2020, she said. “Beauty companies are seen as some of the biggest offenders,” she said, noting there was chatter about how that will have to change.
“We’re going to see a big push in sustainability,” agreed Jenny Hsu, chief strategy officer for HCT Group. She demonstrated the G Series brush composed of sustainable brushes with performance-mimicking animal hair.
While making better-for-the-earth packages was top of mind, there were concerns, especially swirling around the luxury sector. The search is on for materials that are upscale and environmentally conscious, which can be challenging in a category known for glitz.
At the other end of the spectrum, fun rules. “It is all about the selfies and whatever makes them pop," said Jack Savdie, vice president of sales at Global Beauty Care. Highly photogenic masks, he added, show no signs of easing up in popularity, especially versions with metallics, hydrogel and glitter. There was no shortage of masks at CPNA designed for everything from lips to the derriere.
It was hard to bypass Swarovski without stopping in to see the bling. “At Swarovski, we strive for creative excellence and to push the boundaries of design through crystal craftsmanship, innovation, and trusted partnerships. It’s been great to showcase our capabilities to the beauty industry at Cosmoprof and inspire brands with the opportunities that become possible with crystals from Swarovski. We believe in igniting creativity through the power of collaborations and look forward to bringing more sparkle to the forefront of beauty," said Alexander Wellhoefer, senior vice president of operations for Swarovski Professional Americas.
Swarovski bedazzled curling wand.
“Instagram fuels the need for fast beauty, said Derek Harvey, co-chief executive officer and one of the founders of Fusion Packaging. To hasten speed to market, his company offers a turnkey program from packaging to formulation (the company has more than 40 formulas in makeup and over 80 in skin). “We used to go to brands with just packaging; now we are going to brands with a full story,” he said. “We are working like a brand.”
Inside the bottle, natural and organic are becoming the norm, according to Deborah Weinswig, ceo and founder of Coresight Research. “Functional skin care is the main focus, there has been very little buzz about traditional color cosmetics at the show. The clean and ‘free from’ beauty category is trending upward across skin care and hair care products.” Among the ingredients consumers don’t want, she added, are sulfates, parabens, fragrances, alcohol, gluten and silicone.
Consumers are willing to dig into their pockets for these options. “Brands developed with natural and organic inputs are growing significantly above industry averages — accounting for 50 percent of prestige skin-care growth in 2017 and growing 9 percent in mass,” Wissink said.
The move to natural, organic and vegan comes with challenges, said Rose Fernandez, chief executive officer of Algenist, a brand that has always been sustainably produced and mostly vegan. “Wellness has a new momentum; we are taking care of ourselves and it is nice to see the world changing. But there are murky waters to make sure products are credible and whether they work.” New from Algenist is Alive — a color-morphing mask formulated with a prebiotic from algae and a probiotic to target concerns resulting from unbalanced surface-skin bacteria.
Mary Catherine Horgan, category manager for Pharmaca, praised the Discover Green section. "This section was bigger and more centrally located than last year, which made it even more exciting. There seemed to be wider range of natural product offerings—from facial care and makeup to hair care, body care and even natural lash products," she said. "It was clear a lot of thought went into selecting vendors for the Green Beauty “speed dating” meetings. The brands were all a good fit ingredients-wise for our stores and it was fun to see vendors at all different stages of their growth and distribution."
 
Ubuna is a new J-beauty entry.K-beauty is still coveted, but there were indications some shoppers were looking at products inspired by Japanese technology and rituals. That was behind activity at a brand called Ubuna which, according to Tom Winarick, ceo and co-founder of parent company BioBoutique Lab, combines Eastern technology with Western skin care. There are four serums, priced at $180, targeting specific needs such as anti-pollution. There were also signs of products, especially in fragrances, coming from India.
Other major news from the show included:
Indies still drive growth: “The indie brands are still very much in demand,” said Ciocan. “Our event is the only platform where they can get numerous business contacts and insights to take their business to the next level." This year CPNA staged a new take on its Beauty Pitch where brands had access to investment sources through Angels and Founder’s Factory.
With electronic retailing “on fire,” Rob Robbilard, vice president of beauty merchandising for Qurate, was looking for up-and-coming brands for QVC and HSN. He scoped lines in the beauty vanities areas — a new spot on the floor for first-timers and those with fewer than 10 stock keeping units. “Our goal is to find great brands that are compelling, have a great narrative and unique brand stories. We can see faux hair as a major category and self tanning — no bounds in terms of categories we can sell.”
Also zeroing in on indie growth was the BASF Group, which attended the show to solidify relationships with up-and-coming brands that can benefit from its ingredient expertise. BASF unveiled Replexium at CPNA — a new cosmetic active ingredient formulated to help consumers achieve beauty aspirations to look younger.
CBD Goes Mainstream: Awash in a sea of entries, one retailer gravitated toward the CBD entry from Cannabliss. The formulas are infused with 0.5 percent CBD oils. “It is more luxurious than the other CBD products I saw,” she said. The company said it has commitments from a major drug chain along with direct television channels. CBD oil touts many different claims, ranging from joint relief and muscle ache relief to helping with psoriasis and rashes, along with anti-inflammatory benefits.
 
Men’s Grooming: Products for men were among the most active areas on the show floor. Both Target and Ulta Beauty were pegged as retailers putting more effort toward male consumers. Hue for Every Man, a brand that benefited from the Target Accelerator program, made a splash with former NBA star Matt Barnes, who has joined the brand’s executive team, at its booth. Retailers also singled out Respected Roots, a line with beard care at its core. On site, barbers showed the latest trends in men’s styles, most notably deep shave grooves that create designs in the hair.
Tell A Story: To reach Millennials and Generation Z, brands said they are working harder to tell stories behind brands. “Beauty is a category that requires immersion, excitement, hands-on trial, features, benefits and authentic purpose,” said Bruce Teitelbaum, the founder and ceo of RPG, who said more brands and retailers are looking to in-store environments to support brand stories. Added Weinswig, “Brands are increasingly focused on the intersection of experience and things which is resonating with consumers’ hearts and minds.”
Cirem was an example of a company telling a story about its roots in a luxury Beverly Hills pharmacy. The brand also hit a high note with attendees for its altruistic efforts — 10 percent of net sales were recently donated to women in shelters.
Counterfeits: For myriad reasons, including demand for luxury beauty, brands lamented there were more fakes being sold on Amazon than in the past. “An anti-Amazon sentiment among brands seemed to pervade at the conference due to the presence of counterfeits and the lack of brand protection,” said Weinswig.
Beauty and Tech: Hi-Mirror demonstrated a magic mirror that helps users see if skin-care products are making improvements. The mirror can also scan and track product supplies and make alerts if items are expiring. There were numerous innovations in appliances including the Active Oxygen Hair Dryer from Gamma + Italia that uses active oxygen to protect, enhance and brighten hair.
Technology and DNA testing are also ushering a brave new world in skin care. Pathway’s Skin IQ sampled a personalized skin genetic profile, including an analysis of seven categories of skin health. Reports help address skin health through lifestyle, nutrition improvements and which nutrients and topicals will most benefit skin.
Retiring the term ethnic: The Global Beauty Alliances voted to support changing the name of the ethnic hair care category to textured hair in a gathering just prior to CPNA. According to Cornell McBride Jr., co-chairman of the GBA, “It is not unusual when words are changed to more accurately represent current thinking and current behavior.”  The term “ethnic” has been used for decades to describe the products in this category.  "The term “Ethnic” is outdated, marginalizing and no longer the most accurate or descriptive term for the products in this beauty category," McBride said.
Housewives in the House: "Real Housewives of New Jersey's" Margaret Josephs and "Real Housewives of Dallas'" D’Andra Simmons were on hand showing off beauty lines. Josephs has a range of accessories under the Macbeth Collection logo; Simmons has a collection of skin care called Hard Night Good Morning.
 
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M.A.C. Is Relaunching Its Discontinued Hyper Real Foundation for Summer

When it comes to summer makeup collections, our friends at M.A.C. never fall short. In fact, it historically tend to knock it out of the park. The legacy brand is known and lauded for its limited-edition seasonal lines, which always manage to get people excited about playing with makeup again, despite the surplus of new products constantly hitting shelves. The brand's summer 2018 collection, called Supreme Beam, is no exception.

Comprised of 18, celestial-inspired products — including metallic glosses and an exciting base comeback — I daresay you could call it "out of this world." Anyone who's into angelic skin and high-shine lips is in for a real treat, as the collection features the Grand Illusion Glossy Liquid Lipcolour, as well as two face products: the Iridescent Powder and the Hyper Real Foundation. (The latter, you might remember, was discontinued nearly a decade ago, so it's safe to say fans of the dreamy liquid luminizer will be especially over the moon.)

Hyper Real Foundation ($31), which is actually a hybrid that acts as a light foundation and highlighter in one, comes in four complexion-boosting shades, including Bronze, Gold FX, Rose Gold FX, and Violet. It offers a sheer, super-pretty pearlized finish that can be worn alone or mixed in with another foundation or concealer should you fancy more coverage. [Dominic Skinner], M.A.C.'s global senior artist, (https://www.instagram.com/dominic_mua/?hl=en), has given glimpses of what the ethereal base product looks like in action on his Instagram, making us want to get our hands on it even more. Peep the post below to see what we mean.

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The second, equally gorgeous face makeup offering from Supreme Beam is its Iridescent Powder ($29), a loose, finely-milled powder available in two glistening shades: Golden Bronze and Silver Dusk. According to the brand's website, it can be used on their own or mixed in with your moisturizer to enhance its luminosity.

The Grand Illusion Glossy Liquid Lip Colour ($21) will make gloss fanatics swoon. Available in 10 holographic hues with names like Space Bubble and Electric Rainbow, these futuristic-themed beauts couldn't be more fun.

M.A.C. also released two brushes in the collection, including a small duo fibre face brush ($35) fabulous for highlighting and a buffer brush ($53), which is perfect for using with the loose powders.

Something tells us Supreme Beam will be a major hit, so if any of the above interests you, we highly recommend jumping on it, stat. You can purchase everything in the collection now at maccosmetics.com.

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C.O. Bigelow Merges Old-world Charm With Digital Advances

 
In its 180-year history, C.O. Bigelow has become legendary for its ability to tell brand stories. But faced with how to parlay the Greenwich Village mainstay’s appeal into a wider audience, Bigelow’s president Ian Ginsberg knew he had to merge the old-world charm of the store with the digital world.
“We’re a historical retailer competing in a modern world and we’re an indie retailer competing against giants,” Ginsberg said. The reality is, his store faces challenges of foot traffic, even in Manhattan.
“Many shoppers go to Amazon first,” said Ginsberg, who acknowledged his store must vie with e-commerce behemoths who can offer value and loyalty programs. “It can be hard to compete.” Undaunted, Bigelow just launched a totally rebuilt web site, one of the most powerful tools in his arsenal, Ginsberg said. The site promotes products Ginsberg has personally hand-picked in his travels as well as company-distributed brands like Proraso, Marvis, Carthusia and Gülsha.
“A lot of people know us as a brand, but they don’t know us as a store; and a lot know the store who follow us on social, but don’t know about the story behind us and the brands,” said Ginsberg, who added the retailer’s edge is that it is small and nimble.
While a web site refresh may not seem revolutionary, Ginsberg said the site stretches beyond traditional e-commerce options. The task at hand was translating the store, known for its “organized chaos,” and collections of beloved brands, into a digital presentation. “When you walk into our store you know what we stand for. It is a lot about teaching. We needed to mimic the in-store experience to the extent that we can.”
The upgraded web site offers 10,000 stockkeeping units consisting of national brands and Bigelow lines. Images reinforce the retailer’s New York roots, but also show how the company stays current with trending beauty lines such as Jane Iredale and By Terry. There are links to educational videos designed to mirror the high-service levels in the store.
Ginsberg also tapped years of feedback from being online — the retailer was an early adapter with a web site activated in 2000. “We’ve made it easier to shop by brand by showing all the logos. If you pick a brand, you can see a brand story from our perspective…where it is from, why we love it,” said Ginsberg. “There is great search technology.”
Bigelow has collected deep consumer data that was harvested to develop the site. “We know what people are searching and we aggregate things based on their preferences. We made the filtering easier based on how people have shopped with us in the past,” Ginsberg said. “Everyone wants to know about ingredients and we have a part called Honest Ingredients.”
The staple of Manhattan apothecaries also has sites devoted to other business segments, such as surgical supplies and its wholesale business.
The trust consumers have placed in the physical store translates into e-commerce. “We have a lower return rate because we only sell what we love,” Ginsberg said.
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M.A.C. Is Giving Away FREE Lipstick This Weekend

If there's one thing that's better than M.A.C. lipstick it's free M.A.C. lipstick. I mean, who would pass up a tube of your fave shade, especially when there's no price tag attached? It's definitely a no-brainer.

And if you're anything like us, we probably had your attention at "free M.A.C. lipstick," so get ready: the makeup company is celebrating National Lipstick Day on Sunday, July 29 by giving away over half a million free tubes in stores (U.S. and Canada locations only). All you have to do is show up at a local M.A.C. store or retailer to pick up your free full tube (read: not a sample size) from a special nine-shade selection. And in case you're wondering if this is too good to be true, there's no catch or fine print.

So what are you waiting for? Mark your calendar, set a reminder in your phone, do what you have to do. The promotion begins this Sunday and will continue throughout the day (while supplies last). Your lips (and your wallet) will thank you.

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If you're looking for other places to score free lipstick on Sunday, you're in luck because several retailers are celebrating. Winky Lux is offering a free tube of their Plush shade, which is a deep pink, with any purchase on their website. The brand 100% Pure is offering a free lipstick of your choice with any purchase over $100, but just make sure to use the code LIPSTICK. Stila Cosmetics is offering buy one, get one free of their Stay All Day liquid lipsticks on their website.

Get ready to celebrate one of the best days of the year with some new lipstick. You won't regret it, trust us.

Follow De Elizabeth on Twitter and Instagram.

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Arcade Beauty Acquires Suite K Fragrance Operating Assets

Arcade Beauty has acquired the fragrance production assets of Suite K.
Announced today, Arcade Beauty, which is a global provider of customized sampling assets for beauty and personal-care brands, has acquired the fragrance operating and production assets from Suite K. Terms of the deal were not disclosed.
The acquisition gives Arcade Beauty the ability to expand their sampling capabilities for fragrances by utilizing Suite K’s 78,000-square-foot Dayton, N.J. facility for blending and producing samples for vials, roller-ball fragrances and full-size products.
“We are very excited about the opportunity to expand into this state-of-the-art facility,” said Peter Lennox, chief executive officer of Arcade Beauty. “It significantly increases our filling capacity and blending capabilities in the fragrance arena, underscoring our commitment to providing best-in-class sampling technologies for our customers.
Based in Edison, N.J., Suite K is a contract manufacturing company for the beauty and personal-care industries with capabilities in filling, manufacturing and blending products such as fragrances, creams and lotions, among others.
“Arcade Beauty is the perfect choice for this transfer of assets,” said Kathleen Croddick, founder and chief executive officer of Suite K. “The sale will permit us to concentrate resources on areas of strategic business focus while providing a great new home for our people and the exceptional work they do.”
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Prestige and Active Cosmetics Help Boost L’Oréal’s Business

PARIS — L’Oréal’s Luxe and Active Cosmetics divisions, plus its business in Asia and online, helped power strong second-quarter and first-half results.
The numbers, released by the beauty company after the close of the Paris bourse on Thursday, generally outpaced or were in line with analysts’ expectations.
The maker of Lancôme, Kiehl’s and L’Oréal Paris products posted an organic sales increase of 6.3 percent to 6.61 billion euros. On a reported basis, revenues grew 0.7 percent, negatively impacted by currency headwinds, in the three months ended June 30.
Despite L’Oréal’s like-for-like revenue growth slowing slightly versus that of the first quarter, when the uptick was 6.8 percent, Andrew Wood, an analyst at Sanford C. Bernstein & Co. LLC, in a note described the second-quarter gain as “excellent, broadly in line with consensus (of plus 6.2 percent) and so above our expectations (of plus 5.5 percent).”
Deutsche Bank had hoped for 7 percent organic growth.
In the second quarter, like-for-like sales at L’Oréal’s Luxe and Active Cosmetics divisions advanced 13 and 12.9 percent, respectively. Meanwhile, gains decelerated for the Professional Products and Consumer Products divisions, which registered 1.4 and 2.3 percent revenue increases.
“Luxury continued to grow nicely, in line with what we had heard from LVMH earlier this week, and Active Cosmetics accelerated further — impressive, and undoubtedly implying share gains,” said Eva Quiroga, an analyst at Deutsche Bank. “But we were disappointed by the continued weakness in Professional Products and — more importantly — Consumer Products, where the hoped-for recovery in the U.S. refuses to happen.”
On a geographic basis, New Markets, with sales rising 15.4 percent in organic terms, led the gains. “ the fourth consecutive quarter with growth in double digits, and the highest growth since 2008, led by fantastic growth in Asia-Pacific (of plus 22.9 percent),” wrote Wood.
At the same time, like-for-like sales were up 3.5 percent in North America and decreased by 2 percent in Western Europe, dragged down by business in France and the U.K.
In the first half of 2018, L’Oréal’s net profits grew 11.9 percent to 2.28 billion euros, while operating profit rose 1.8 percent to 2.58 billion euros. The company’s operating margin stood at 19.2 percent, an increase of 30 basis points against the same prior-year period.
Group sales were up 6.6 percent in organic terms and dipped 0.2 percent on a reported basis to 13.39 billion euros.
L’Oréal’s revenues from e-commerce advanced 36.4 percent in the six months, when they generated 9.5 percent of total company sales. And revenues from the travel-retail channel gained 27.3 percent.
“Second-quarter and first-half results show solid top-line driven by e-commerce, China and travel retail, all growing 20 percent or higher, consistent with our thesis of a global beauty industry with a bias to acceleration and continued premiumization,” wrote Javier Escalante and Robert Ottenstein, analysts at Evercore ISI, in a note. “L’Oréal’s margin leverage, despite adverse FX, supports our view that is emerging with an advantaged, more profitable business model from its investments in digital.”
Jean-Paul Agon, L’Oréal chairman and chief executive officer, in a statement also noted that the beauty market is becoming more premium, and that it remains dynamic.
“In lively markets, the L’Oréal Luxe and Active Cosmetics divisions have both recorded double-digit growth, driven by the power of their brand portfolios and the quality of their innovations,” he said. “The Consumer Products division, especially with a robust performance at L’Oréal Paris, has recorded moderate growth, held back by an environment that is very difficult in some markets. The Professional Products division, meanwhile, has posted a slight increase in sales.”
Continued Agon: “The good sales growth and the quality of the first-half results reinforce our confidence in our ability to once again outperform the cosmetics market in 2018, and to achieve significant like-for-like sales growth and an increase in our profitability.”
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Everything You Need to Know About Microshading Your Eyebrows

If you have sparse or light-colored brows (hi, that’s me), you’ve probably at least been intrigued by the modern version of permanently inking your arches: microblading. But if you have sensitive skin (also me), you might be hesitant to pull the trigger. Meet microshading, the beloved brow technique’s softer, gentler little sister.

Traditionally, microblading is done by tattooing super fine lines throughout your entire brow to look like natural hairs. It can be used as a way to fill out super sparse brows, or add extra oomph for an even fuller look. (Its cousin microfeathering, is the same idea except pigment is only applied to the sparse patches in your arches.) But of course, there are horror stories that will make anyone with even slightly sensitive skin shudder.

According to a report from New Beauty, there’s a new technique in town that promises to put sensitive skin fears to rest. Microshading is the same basic idea — permanent pigment applied to your arches with the use of teeny tattoo needles — but with a twist in technique.

“Microshading, often referred to as the 'Shadow Effect,' gives the brow a gradient appearance with small pin-point dots,” brow expert Nadia Afanaseva of Eye Design New York, told New Beauty. “Microblading leaves tiny, natural-looking hair-strokes, whereas microshading leaves small, pinpoint dots.”

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It sounds a little weird — like the signature teeny dots found in Roy Lichtenstein's iconic art — and at first, the result looks like what you'd get if you drew on your brows with harsh lines. But in about a week, the block of color fades, giving way to a softer, fuller looking arch.

So, why go with microshading over microblading? Experts say it’s better for sensitive or oily skin. “I recommend microshading for clients with oily skin because the microshading technique takes better to their skin type,” Afanaseva told New Beauty. Just like microblading, microshading will last anywhere from one to three years.

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