Stanley Acker, the pioneer of Pavion and Wet ‘n’ Wild is also back in the beauty business looking for market opportunities.ĪM hopes to keep the momentum going set forth by Zimmerman. Some retailers have filled the value positioning with private label brands or newcomers such as NYC New York Color. Eckerd, according to Kathy Steirly, vice president beauty merchandising, said Wet ‘n’ Wild was discontinued at the beginning of the year and that the chain only carries AM products on a promotional basis. There are those, however, who have already excised AM brands from the mix. “The brands that are in trouble would still be if he was there or not.”ĭuane Reade’s Marti Bentley also expects the company to have a solid game plan in place. “Wet ‘n’ Wild will be fine,” said one source for a leading retail chain. Several leading mass market retailers agreed. “The strength of the brands is what is important with retailers,” he said. He doesn’t believe his departure, however, will deter from AM’s future. With his vast experience in the mass market, Zimmerman has been a well-respected executive with solid trade connections. Heit added that Artmatic’s distribution has also become primarily international. Wet ‘n’ Wild is now thought of as the more fashionable, edgy brand Artmatic is for the woman who wants value, but doesn’t grasp at fashion trends. Under Zimmerman’s tutelage, Wet ‘n’ Wild was repackaged and given a marketing position to separate it from Artmatic. Although, in nail polish AM’s sales slipped 4.2 percent to $27.4 million, of which Wet ‘n’ Wild represented more than half. IRI did not break out Wet ‘n’ Wild numbers for facial makeup, but company-wide volume rose 37.6 percent to $13.6 million. Companywide, AM’s lipcolor sales, however, were flat at $43.8 million. Sales of Wet ‘n’ Wild lipstick grew 37.6 percent to $13.6 million for the 52-weeks ended August 12. While Wet ‘n’ Wild, which represents two-thirds of AM’s business - has lost some distribution, it has still been able to pick up share in some key categories, according to Information Resources Inc. With new competition from Del Labs NYC New York Color, AM’s chief budget lines - Wet ‘n’ Wild and Artmatic - came under attack. “We first had to get everyone talking the same language,” said Zimmerman. When they were all merged together, each company had different fiscal reporting schedules and even disparate inventory systems. One of the first steps Zimmerman took was to get all of the brands on one platform. That resulted in a 10 percent staff reduction and other cost-cutting strategies. Earlier this year, AM tapped Boston consulting firm DRG Group for help with the turnaround plan. Our bottom-line profits have never been higher and that is a turnaround.”Īlong with Zimmerman’s expertise, AM has had help along the way in reaching a healthier bottom line. “Without question, 2001 is a banner year for us.
Retail sales for 2000 are estimated at $260 million.Īlthough acknowledging a decline in retail sales, he said he’d prefer “fewer sales and more profit than more sales and less profit” and added that the company had been operating at a loss last year. Saying it is a private company, Heit declined to divulge yearend sales projections, but said 2001 would be the most profitable year in the history of the firm. I’m looking forward to getting back into advertising and marketing.” “Right now, the company is healthier and has more cash than ever.
In an interview with WWD, Zimmerman said he had reached his goal set three years ago of “fixing” AM. Other AM brands include Lord & Berry, Jonel, Tropez and Black Radiance. The portfolio included several brands that competed head-to-head such as Wet ‘n’ Wild and Artmatic. AM is owned by a group of banks led by Credit Agricole Indosuez, private investors and management. Zimmerman, a former executive with L’Oreal and Revlon, had a three-year contract to help fortify AM Cosmetics, a company that was put together via a patchwork of acquisitions. Heit has been with AM Cosmetics and a firm it acquired, Pavion, for 15 years. AM is searching for a permanent president and ceo. Stephen Heit, the company’s chief financial officer, has been named acting president. NEW YORK - After helping AM Cosmetics establish identities for its myriad brands and restoring the firm to profitability, Arnold (Arne) Zimmerman will step down from his position as president and chief executive at the end of the year. Byline: Faye Brookman / With contributions from Laura Klepacki
0 kommentar(er)
