Estee Lauder offers buyout to employees.
The announcement is just the latest move made by Lauder in an effort to shore up its bottom line. In October, the company said it would sell Stila, one of its newer cosmetics brands, in an effort to improve profitability. At the same time, Lauder said that the closure of more than half of the 82 Federated Department Stores would cut its reported earnings per share by 9-10 cents in its current fiscal year, which ends June 30, 2006.
In other Estee Lauder news, the company opened its new research facility, The Estee Lauder Companies Innovation Institute, located in Shanghai, China.
The Institute will focus on biological and physical sciences. Its scientists will study the safety and efficacy of topical botanical and synthetic materials and explore the genetic basis for differences in the response of human skin to environmental stressors. Harvey Gedeon, executive vice president of research and development, and Cedric Prouve, group president of the international division, traveled to Shanghai to attend the official inauguration.
"We are a global company that understands the importance of acting locally. With eight of our brands (Estee Lauder, Clinique, MAC, La Met, Bobbi Brown, Aramis, Tommy Hilfiger Toiletries and Donna Karan) in at least 25 locations in China, investing in market-specific R&D was the next logical step for us," explained William Lauder, president and CEO. Besides scientific research, the Institute will focus on marketing, consumer research and raw material development.
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|Title Annotation:||As We Go To Press|
|Publication:||Household & Personal Products Industry|
|Date:||Dec 1, 2005|
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