The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
HAMBURG, Germany — German consumer goods firm Beiersdorf reported slowing sales growth for its Nivea skincare brand in the second quarter on Tuesday, although it confirmed its outlook for 2019.
First-half sales came in at €3.837 billion ($4.30 billion), a rise of 4.8 percent after stripping out currency effects and acquisitions, compared to 6 percent in the first quarter.
Beiersdorf shares fell 2.6 percent in early trade.
Nivea sales expanded 3.2 percent in the first half. In the first-quarter sales had increased by 4.9 percent.
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Mass-market labels like Nivea are struggling amid the rise of small, disruptive brands, and as consumers favour more natural ingredients and premium products, prompting Beiersdorf to push pricier lines like La Prairie and Eucerin.
Last month, Beiersdorf announced it was setting up an innovation unit to develop new "indie" brands and strengthen existing lines such as Labello, 8X4, and Hidrofugal.
First-half operating earnings rose 1 percent to €592 million, stripping out special factors of 11 million relating to Beiersdorf's acquisition of US suncare brand Coppertone $550 million in May.
Beiersdorf confirmed its guidance for 2019 group sales growth of 3-5 percent, and an operating margin of 14-14.5 percent in its core consumer business unit.
Shares in French rival L'Oréal fell last week after second-quarter sales growth missed forecasts and the cosmetics maker said it expected little improvement this year in the United States where demand for make-up is slowing.
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