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Author: TMFBreakerOrion Big gold star, 5000 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121  
Subject: BARE Earnings Date: 5/2/2008 3:18 PM
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BARE reported earnings last night, with a beat on eps and a small miss on revenue.

Seeking Alpha put up the conference call transcript: http://seekingalpha.com/article/75273-bare-escentuals-inc-q1-2008-earnings-call-transcript?source=yahoo&page=5

BARE has got a lot of extra attention over the last two days due to an appearance by Jon Najarian on CNBC, pointing out huge put activity ahead of earnings: http://www.cnbc.com/id/24388795/?__source=yahoo%7Cheadline%7Cquote%7Ctext%7C&par=yahoo

The news from the PR Release, and the conf call continued to confirm growth in general and market share, and did have some new updates/clarifications:
1. Sephora and Ulta new doors are weighted towards the second half of the year, which means the extra expansion of BARE into new locations is weighted towards the end of the year.
2. Sephora is rolling BARE out into Sephora Spain, and is continuing to expand BARE's presence in Sephora France after a recent successful launch.
3. Currently testing first department store in London - Selfridges. On track to open 10 department store doors in UK by end of year.
4. Evaluating and testing opportunities in various international markets (Canada, China, Japan, Germany).
5. Testing of new infomercial going on now. Full rollout by end of quarter. (The infomercial sales have vastly better margins, and the shift in sales from infomercials to wholesale is what really hurt BARE's stock price in 2007.)
6. BARE continues to be the number one makeup sold on QVC, and at Sephora and Ulta.
7. The Rare Minerals effort has been going well. (Rare Minerals is BARE's new efforts into skin care. Remember BARE is number one in foundation. Color is bigger than foundation. Skin care is bigger than color.)
8. Last year, 2007, Bare Minerals was the number one foundation sold, period - industry wide.
9. There is a small shift in revenues to be recognized from Q2 to Q3, supposed to be about 2cent impact on eps. This is due to shipping schedule of kits.


From the transcript, Leslie Blodgett CEO said the following: Yeah. We believe that we are continuing to trend number one in the face categories. Last year we were the number one share in the industry in '07. And I don't know if you saw that we have great results in light of the broader industry trends we are up 38%. In prestige versus the industry which is down 7. And we really believe that we are continuing to focus on what we do best.

The BARE Annual meeting is May 15th, and I think a Fool may be traveling to San Fran to attend. I'm sure you'll hear a report then. :)


Karl ~ strolling through
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