International sales help boost Bare Escentuals' results
reported another big rise in its third quarter sales and profits,
as brand awareness grows in both the US and Europe.
The company reported net sales up nearly 30 percent to $126.6m, compared to $284.0m for the same period a year earlier, a result that in turn helped to increase net income by 131 per cent to reach $20.5m, compared to $8.9m. For the first nine months net sales rose by 29 percent to reach $366.4m, while net profits were up 80 per cent to reach $61.1m. CEO Leslie Blodgett said that the performance reflected the fact that the company had increased its brand awareness through affirming its retailing partners and points of presence, both abroad and domestically. Looking to the future Blodgett said that the company would continue to expand its multi-channel distribution model, as well as concentrating on efforts to expand the brand on a global basis. Earlier in the year experts had cast doubts over the wisdom of relying too heavily on infomercials as a primary retail channel after the company had issued a profits warning over its sales in both June and August. The San-Fransisco-based company had been concentrating its efforts on the North American market, where it has built up a loyal customer base for its mineral-based cosmetic and skin care lines by selling through the QVC home shopping network. Industry experts believed that this focus was too narrowly defined, leaving the company open to market fluctuations. However, this focus is now changing following the acquisition of a UK distributor, a move that has given the company a good foothold to access the European market, where demand for such products is fast growing. The deal, which was brokered at the beginning of the year, saw Bare Escentuals buy up UK-based Cosmeceuticals Limited, a company that distributes its mineral-based cosmetic and personal care products throughout Europe. Thanks to that deal, sales are now starting to take off in Europe, and the company's customer base is beginning to spread.