First Quarter Fiscal 2014
- Net sales are forecasted to grow between 5% and 7% in constant currency.
- Foreign currency translation is expected to negatively impact sales by approximately 1% versus the prior-year period.
- The Company expects to substantially increase advertising spending in the quarter to support major new product launch activity, which is expected to build sales momentum in the coming quarters.
- Diluted net earnings per share are projected to be between $.67 and $.71.
Full Year Fiscal 2014
- Net sales are forecasted to grow between 6% and 8% in constant currency.
- Foreign currency translation is expected to negatively impact sales by approximately 2% versus the prior-year period.
- Diluted net earnings per share are projected to be $2.74 to $2.87. The approximate 2% negative currency impact on the sales growth equates to about $.10 of earnings per share. Excluding this potential foreign exchange impact, earnings per share is expected to rise 8% to 13%.
- The Company’s broad-based growth is expected to continue ahead of the prestige beauty industry for the full fiscal year.
The Company expects to roll out the last major wave of SMI in July 2014 in certain of its locations. As a result, the Company expects some retailers may accelerate their sales orders into the Company’s fiscal 2014 fourth quarter in advance of this implementation to provide adequate safety stock to mitigate any potential short-term business interruption associated with the SMI rollout. The Company’s fiscal 2014 full year outlook does not include the impact of this potential shift. As the Company gets closer to its fiscal fourth quarter, it will provide an estimate of the sales and operating income impact of the shift.