BARE has good quarter, led by bricks and mortar.
Thursday, July 30th, 2009Bare Escentuals saw a sales decline of 4 percent to $138.5 million for its second quarter. Profits though fell harder, dropping to $19.8 million from $24.7 million. In its second quarter, BARE added 16 boutiques. Compared to a year ago, it has 42 more boutiques than it had in the year prior. The company had 112 units at the end of the quarter.
The company’s direct to the consumer segment was socked, as Infomercials continued to decline. Interestingly, the company said it saw the potential of 1,400 to 2,000 points of distribution at retail.
Sephora and Ulta have about 600 freestanding stores, most of which sell Bare Escentuals. If you add the 112 BARE boutiques, you come out to more than 700. Myles McCormick, COO, also noted that there was an “excess of opportunities within department stores.”
Macy’s West has had a very successful test of Bare Escentuals in some key stores, say sources. Perhaps, BARE can continue to expand in department stores, many of which would gladly give the San Francisco firm favored locations.
Already Bare Escentuals is the top brand at QVC, Ulta and Sephora, and it can hardly continue to gain share in these distribution channels. Therefore, it would make sense that Leslie Blodgett, CEO, will lock horns with Estee Lauder Companies and L’Oreal Luxury brands.