Message Font: Serif | Sans-Serif
No. of Recommendations: 5
Really informative powerpoint went with this one. I hope they make them available outside just the webcast.

Presentation was made jointly by the CMO, Jim Taschetta and the COO/CFO, Myles McCormick.

Jim covered most of the bases we're familiar with, including customer loyalty, and repeat business.

Here are a few facts from his section (some we saw before in the ICR Xchange Conf presentation, some were new):

1. Expanding foundation
Mineral awareness: 26% unaware; 74% aware of mineral makeup
77% of those aware have not tried; 23% have tried;
60% indicate they are somewhare or extremely likely to try in next 12 months; BareMinerals is the brand non-users are most likely to try

2. Expand base of foundation; BARE has 12% share of facial makeup market ($3.6B market); then listed plans

3. Strengthen Color
BARE has 2% share of color market ($4.9B market)

4. Establish Skin Care (they just started this effort early this year)
BARE has 1% share of skin care market ($7.8B market)

note: Brand Permission: Foundation Users willing to try Skin Care of Same Brand for BARE is 78%; for other brands is 46% ! (this goes along with them being a natural makeup)

Myles McCormick's highlights

He discussed how they were reaching all segments of the market (young - old, broke to rich etc) by the strategy of selling through Sephora, Ulta, Nordstrom, QVC, Infomercials, Retail Boutiques

Some interesting numbers/facts/strategy

1. Domestic Distribution growth
This slide has a list of domestic door count year end
2007 they had - total of 559; 248 Ulta; 185 Sephora; (the rest split)
Forecast for 2008 - total of 786; 308 ulta, 225 Sephora, small pieces for Boutiques, Dept Stores, SiJCP
Full Potential - total of 2300+; 200+ Dept Stores; 1000 Ulta; 400 Sephora; 400 Boutiques; 300+ SiJCP

2. Retail revenue indexed to 1st door
This slide showed how each door expanded revenue; there is some cannibalisation, but still an increase
1 location = 1x
2 locations = 1.3x
3 locations 2.1x
4 locations 2.3x

3. Global Expansion Opportunity - Intl market for cosmetics is 4.5x size of US - approx $36B
Near term addressable markets - US, Japan, UK, France, Germany, Spain, Italy, Korea, 2.5x size of US - approx $20.5B

4. Global Expansion Update
France - presence in all Sephora France doors; #1 foundation market share; #1 US color brand
German - launced on QVC in July 2007; #1 color brand
UK - strong launch at Selfridge's in London
Japan - #1 beauty brand on QVC Japan
New Markets - Launching Spain and Canada in Q4

5. Superior Operating Model - I LOVE THIS SLIDE!!
This is a simple slide with 4 competitors: BARE, L'Oreal, Estee Lauder, Avon, comparing Gross Margin, Expenses, Advertising & Promo, and Operating Margin.
If you just looked at Operating Margin you would swoon - BARE is beating the closest by double. Avon is at 8.8%; EL at 10.3%; L'Oreal at 16.6%; and BARE is at 33.1%. Nice.

6. Financial Summary
recap of Q1; reiteration of FY2008 guidance; long term sales growth of 20-25%; long term EPS growth of 25%
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.