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$EL's operating margin rose to 16% in 1Q16 from 13.2% in 1Q15. This was impacted by a favorable comparison of about $127MM related to accelerated orders into 4Q14, partially offset by unfavorable foreign currency translation of about $60MM. Adjusting for impact of accelerated orders, operating margin would have fell 90 basis points.
$EL, manufacturer and marketer of personal care products, announced that Michael Smith joined it as SVP, Global Information Services and Chief Information Officer. Smith began in this position on Aug 28, 2017, reporting to Tracey Travis, EVP and CFO. He joined from Boma Technologies, a tech consulting company that he founded, and served as CEO.
Beauty care products maker $EL said Olivier Bottrie, President of its Travel Retail Worldwide division, has assumed the additional role of Global President of Travel Retail and Retail Development, effective October 1, 2017. He will continue to report to International Group President Cedric Prouve.
As $EL posted 4Q17 results and positive outlook for 1Q18 and FY18, the maker of MAC Cosmetics said, “many international department stores continue to generate very healthy growth, especially those in high-traffic touristic destinations like Harrods.”
For 1Q18, $EL sees net sales to jump 9-10%, with 2017 acquisitions of Too Faced and BECCA forecasted to contribute approximately 4 percentage points to the company’s overall sales growth. Diluted EPS is projected to be between $0.85 and $0.89 for the coming quarter.
For FY18, $EL sees net sales to jump 8-9%, with 2017 acquisitions of Too Faced and BECCA forecasted to contribute approximately 2 percentage points to the company’s overall sales growth. Diluted EPS is projected to be between $3.60 and $3.70 for the year.
$EL announced that it has invested in a beauty company named DECIEM, a vertically integrated multi-brand company, driven by a consumer-centric focus. Terms of the investment were not disclosed. DECIEM was founded in 2013 in Toronto, Ontario by Brandon Truaxe, who leads the company along with Co-CEO Nicola Kilner.
$EL said Peter Lichtenthal, Global Brand President, Bobbi Brown and Bumble and bumble, plans to retire in January 2018. He will also support Jane Hertzmark Hudis on special assignments until his eventual retirement. Succeeding Lichtenthal at Bumble and bumble is Zach Rieken who will continue as SVP, Global General Manager, Bumble and bumble.
$EL said Dominique Conseil, Global Brand President, Aveda, has announced plans to retire. Succeeding Conseil is Barbara De Laere, who has been appointed SVP, Global General Manager, Aveda. Justin Boxford has been appointed SVP, Global General Manager, La Mer, reporting to Sandra Main. The changes are effective July 1, 2017.
$EL said that with respect to the North America performance in 3Q17, the brick and mortar channels were challenged, mainly in the US. $EL also stated that its MAC team is working strongly in the US to accelerate performance in the department store and the freestanding store channels with some programs in place for the next couple of quarters.
Makeup manufacturer $EL posted 12% spike in net earnings in 3Q17, helped by higher sales of $2.86Bil, up 8% YoY. Net earnings were $298MM, or $0.80 per share compared with $265MM, or $0.71 per share in the year-over period. Adjusted for special charges, the company earned $0.91 per share during the quarter.
$EL said Thia Breen, Group President, North America, decided to retire. Chris Good, President, U.K. and Ireland, has been named her successor as President, North America. Succeeding Good is Philippe Warnery, current General Manager, Canada, who has been appointed SVP and General Manager, U.K. and Ireland. These are effective July 1, 2017.
$EL said James Gager will become SVP, Creative Director and Brand Development, effective May 1, 2017. Mr. Gager will report directly to John Demsey, Executive Group President, for special projects and to Jean-Guillaume Trottier, Global Brand President, Jo Malone London, for his brand responsibilities.
$EL has appointed Toni Lakis as SVP & Global Creative Director of the M·A·C brand, effective March 20, 2017. Ms. Lakis will report directly to Karen Buglisi Weiler, Global Brand President, M·A·C. She will also have a matrix reporting line to John Demsey, $EL’s Executive Group President. Ms. Lakis succeeds James Gager.