Financial News

NEW YORK — Beauty company Revlon posted a 4.5% sales gain in 2011, driven in part by its acquisition of Sinful Colors and higher sales of Revlon and Almay color cosmetics, and Revlon ColorSilk hair color.

“2011 was a year of many notable achievements. We delivered net sales growth of 4.5% and sustained highly competitive operating income margins. We delivered our fourth consecutive year of positive free cash flow and we improved our capital structure by refinancing and reducing our net debt,” stated Revlon president and CEO Alan T. Ennis.

A wet spring last year made for ideal allergen-
creating conditions heading into summer 2011 — the growth of ragweed and an increase in mold. According to a Quest Diagnostics study published in 2011, sensitization to common ragweed has grown 15% nationally since 2000, while mold grew 12%. IMS Health projected a strong spring allergy season, especially across the north and northeast.


In the United States, beauty sales in both the mass and prestige channels were positive month after month in 2011, but prestige beauty took the spotlight in 2011, according to market research company The NDP Group.


In fact, the total U.S. prestige beauty industry experienced an 11% increase in dollar sales during 2011, with skin care and fragrance sold in U.S. department stores posting double-digit gains.


Experts said that despite competition from electronic cards and rising postal fees, there still is a future for the paper greeting card category. Sean O’Malley, an analyst for Wedge Capital, estimated the industry saw 1% unit volume growth last year. He estimated 2011 greeting card sales were $2.5 billion to $3 billion. Nearly 80% of category sales are driven by women ages 30 to 50 years whose “habits die hard,” according to O’Malley. Premium cards and value cards are performing best.

Asthma has been becoming more relevant in the nonprescription aisles of late. Even as Armstrong Pharmaceuticals phases out what was an almost $100 million-and-growing brand in Primatene Mist 
— the Food and Drug Administration has removed any inhalers containing 
chlorofluorocarbons from the market — homeopathic supplier King Bio is currently presenting an alternative in its AsthmaCare product.


Some people swear by it. Others doubt it. What’s undeniable, however, is that homeopathic medicine sales were up 15.7% in 2011 to $173 million in natural supermarkets (excluding Whole Foods) and food, drug and mass (excluding Walmart), according to SPINSscan Natural. And with media reports of recalls, dangerous and lethal side effects, counterfeiting and contamination, the homeopathic school of medicine founded by Samuel Hahnemann in 1800 is making a comeback.


After strong growth, the cereal/granola bar category is showing slower growth. A report on “Food Bars in the U.S.” by Packaged Facts estimated U.S. sales of 
cereal/granola bars at $3.1 billion in 2011, with flat sales for the overall category, despite some growth in premium granola bars. Experian Simmons data showed that 40% of adults use cereal/granola bar products overall, said David Sprinkle, research director at Packaged Facts.

MEMPHIS, Tenn. — Fred's on Thursday announced an increase in the company's quarterly cash dividend by 20% to 6 cents per share, and an increase in the company's stock repurchase program to an additional 3.6 million shares, or 10% of the currently outstanding shares.