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 foundationMineral awareness: 26% unaware; 74% aware of mineral makeup77% 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 try2. Expand base of foundation; BARE has 12% share of facial makeup market ($3.6B market); then listed plans3. Strengthen ColorBARE 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 highlightsHe 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 BoutiquesSome interesting numbers/facts/strategy1. Domestic Distribution growthThis slide has a list of domestic door count year end2007 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, SiJCPFull Potential - total of 2300+; 200+ Dept Stores; 1000 Ulta; 400 Sephora; 400 Boutiques; 300+ SiJCP2. Retail revenue indexed to 1st doorThis slide showed how each door expanded revenue; there is some cannibalisation, but still an increase1 location = 1x2 locations = 1.3x3 locations 2.1x4 locations 2.3x3. Global Expansion Opportunity - Intl market for cosmetics is 4.5x size of US - approx $36BNear term addressable markets - US, Japan, UK, France, Germany, Spain, Italy, Korea, 2.5x size of US - approx $20.5B4. Global Expansion UpdateFrance - presence in all Sephora France doors; #1 foundation market share; #1 US color brandGerman - launced on QVC in July 2007; #1 color brandUK - strong launch at Selfridge's in LondonJapan - #1 beauty brand on QVC JapanNew Markets - Launching Spain and Canada in Q45. 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 Summaryrecap of Q1; reiteration of FY2008 guidance; long term sales growth of 20-25%; long term EPS growth of 25%
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