Rumours gather steam on Estée Lauder sell-off; Catch Group revenues climb to $306 million; Shaver Shop's turnover lifts 33.6 per cent; and Scentre Group profit hits $1.4 billion during first half.
Rumours gather steam on Estée Lauder sell-off
Speculation about whether the Lauder family – who still own 40 per cent of the multinational and hold nearly 90 per cent of the voting rights – would consider selling the 71-year-old company has been in play for over a decade. The one thing that hasn't changed is that any prospective buyer will have to be one of the giants of the beauty industry to be able to afford a huge price tag that reflects Estée Lauder's market value of $US39 billion.
Lauder's shares reached a record high last week, following rumours that Unilever was considering a bid. L'Oréal's name has also been thrown into the mix as a potential interested party. Estée Lauder has enjoyed blistering growth in recent years through acquisitions of hot niche makeup and fragrance brands, increasing its presence in speciality beauty retailers like Sephora and Ulta by 40 per cent over the past year, and strong e-commerce growth.
Unilever has been building its prestige beauty portfolio with acquisitions such as Dermalogica. But the main reason the Anglo-Dutch giant could be considering such a seismic buyout is to fend off another takeover attempt from Kraft Heinz. Unilever dodged a $US143 billion bid from the food colossus six months ago and buying a company as big as Estée Lauder could be a major deterrent. Analysts estimate that Unilever would have to pay 40 per cent of an agreed purchase price for Estée Lauder in cash. Not too much of an ask from one of the Big Three of beauty and personal care.
Catch Group revenues climb to $306 million
Boasting close to one million active customers, Catch Group is Australia's largest pure-play online retailer. The key stats speak for themselves: 450,000 visits and 8000 orders per day. The owner and operator of Scoopon, Pumpkin Patch, GroceryRun, Mumgo and Bon Voyage launched catch.com.au in June and the online marketplace is racking up sales of $100,000 a day. Beauty is a key player and it's easier to list brands that AREN'T available on the site than to run through the list of mass and prestige names whose products fuel the site's mega beauty discount deals, professional haircare sales and makeup and fragrance bargains.
Catch Group has posted revenues of $306 million, following the acquisition of Pumpkin Patch and the debut of catch.com.au, which is growing at an enviable 25 to 30 per cent every week. Over 300 new brands across several categories are expected to sign on before the Christmas rush and co-founder Gabby Leibovich expects the marketplace's sales to hit $50 million this year.
Shaver Shop's turnover lifts 33.6 per cent
In spite of the masculine-sounding name, Shaver Shop is a popular shopping destination for women on the hunt for hairbrushes, hair-removal appliances and electric toothbrushes. The chain's first full-year revenues since its debut on the Australian share market lifted 33.6 per cent to $142.6 million. Online sales were a bright spot, thanks to the company's new website launched in February, growing 9.4 per cent to $11.7 million.
Bricks-and-mortar expansion was also on the up over the fiscal year to June. Shaver Shop's national retail network increased to 95 stores, following the opening of eight new outlets and the re-acquisition of seven franchises. Same store sales rose 6.2 per cent over the period and CEO Cameron Fox is optimistic for the festive season after such a strong beginning to the 2017/2018 financial year.
Scentre Group profit hits $1.4 billion during first half
There's never an idle corporate moment at Westfield spin-off, Scentre Group. During the first six months of the year, the company kickstarted $900 million worth of developments, including projects at Westfield Carousel in Perth and Westfield Plenty Valley in Melbourne. But the new jewel in the crown is the $470 million development at Westfield Coomera on the Gold Coast, slated to open next year. Construction is well underway on the group's first greenfield development in 12 years and the 59,000 square metre regional hub will house 140 speciality stores, a dining precinct, a cinema complex and anchor stalwarts including Coles, Woolworths, Kmart and Target.
The retail colossus, which operates 39 Westfield centres, including 16 of the top 25 performing shopping complexes in Australia, has posted a $1.4 billion profit for the first half of the year to June 30. Average speciality sales rose to $11,250 per square metre, with food retail, dining, technology and appliances and retail services experiencing surging growth. "Scentre Group is very pleased with these first half results, which highlight strong operating performance and reflect the benefit of our strategic focus on delivering long-term sustainable growth through our ability to curate an exceptional product mix and deliver extraordinary retail, lifestyle and entertainment experiences for our customers", noted Peter Allen, CEO of Scentre Group.
Snippets from the wires
- Customised foundation has been in the spotlight. Taking things a step further, Eyeko London is launching the world's first "bespoke"mascara exclusively in Sephora's flagship Champs-Elysees store in Paris this week. Customers consult with a specialist who recommends a wand and formula to suit their lash type.
- Online spending represents only a fraction of total retail sales in Australia, but the sector is the subject of constant analysis. According to a survey commissioned by CouriersPlease, 56 per cent of Aussie shoppers spend more on a single online store, in contrast to a single bricks-and-mortar store. Millennials spend the most online rather than in-store – 71 per cent – followed by 53 per cent of Gen Xers and 39 per cent of Boomers. The main reasons for the trend are: greater choice (19%), the comfort of being at home (15%) and more frequent and better sales (11%).
- Sales at Ulta Beauty, the largest specialist beauty retailer in the US, continue to soar. Net sales for the first six months of the year spurted 21.6 per cent to $US2.6 billion.
- Coty is still "digesting" the 41 brands it acquired from Procter & Gamble. Net revenues in the financial year to June climbed 76 per cent to $US7.65 billion, as Q4 revenues reached $US2.24 billion. Positive results from ghd, Younique, OPI and the luxury division, including Hugo Boss, Gucci, Chloé and philosophy, helped to offset teething problems with former P&G brands such as Covergirl and Clairol.