Skincare launch soothes Yves Saint Laurent

A NEW line of Yves Saint Laurent skincare products has enabled the French luxury goods group to maintain momentum at a flat time for clothing sales.

However, the launch did not prevent a sharp fall in profits, the company revealed yesterday.

Yves Saint Laurent's results showed that net profits slid from Fr41m (pounds 4.7m) to just Fr2.6m in the first half because of higher costs and taxes.

Total group sales rose by 6.8 per cent to Fr1.39bn.

Operating profits slipped from Fr130.6m to Fr94.6m, hit by the cost of the skincare products launch, which has a promotional budget of Fr100m.

Without beauty products, operating profits would have been 18 per cent higher.

The fashion house also forecast that full year sales during 1992 would be up by about 4 per cent, with a net profit margin of around 6 per cent.

The new line of skincare products, Soin Precurseur de Beaute, launched last spring, gives Yves Saint Laurent a strong presence in a sector of the beauty products market where it has so far failed to make a mark.

Pierre Berge, chairman, has grand ambitions for the Precurseur line, which has not yet been launched in the United States. A new factory was opened this year. The new line is expected to break even in 1993.

Skincare products are second only to scent in the international beauty products market.

They account for 30 per cent of beauty product sales in France and as much as 50 per cent in Japan.

The first contribution from the new line pushed up sales in the perfume division by 8.2 per cent to Fr1.1bn.

Luxury goods houses in Paris are placing increasing emphasis on beauty products to compensate for stagnant sales of clothing. Yves Saint Laurent Couture sales grew by only 0.9 per cent to Fr258.5m.

The group has invested Fr10m in a new designer, Robert Merloz, who showed his debut ready-to-wear collection in Paris two months ago.

The collection by the 26-year-old Frenchman received a lukewarm reception.

His contribution in the second half is not expected to be significant.

Yves Saint Laurent is likely to obtain greater returns from the launch of a new women's scent in late 1993.

Start your day with The Independent, sign up for daily news emails
Life and Style
Living for the moment: Julianne Moore playing Alzheimer’s sufferer Alice
health
News
Jay Z
businessJay-Z's bid for Spotify rival could be blocked
News
The spider makes its break for freedom
VIDEO
Voices
A propaganda video shows Isis forces near Tikrit
voicesAdam Walker: The Koran has violent passages, but it also has others that explicitly tells us how to interpret them
Sport
Ashley Young celebrates the winner for Manchester United against Newcastle
footballNewcastle v United player ratings
Arts and Entertainment
books
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Graduate Application Support Analyst

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Reach Volunteering: External Finance Trustee Needed!

Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...

Christine McCleave: FP&A Analyst

£36,000 - £40,000: Christine McCleave: Are you looking for a new opportunity a...

Recruitment Genius: Sales Executive - OTE £40,000

£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...

Day In a Page

War with Isis: Iraq's government fights to win back Tikrit from militants - but then what?

Baghdad fights to win back Tikrit from Isis – but then what?

Patrick Cockburn reports from Kirkuk on a conflict which sectarianism has made intractable
Living with Alzheimer's: What is it really like to be diagnosed with early-onset dementia?

What is it like to live with Alzheimer's?

Depicting early-onset Alzheimer's, the film 'Still Alice' had a profound effect on Joy Watson, who lives with the illness. She tells Kate Hilpern how she's coped with the diagnosis
The Internet of Things: Meet the British salesman who gave real-world items a virtual life

Setting in motion the Internet of Things

British salesman Kevin Ashton gave real-world items a virtual life
Election 2015: Latest polling reveals Tories and Labour on course to win the same number of seats - with the SNP holding the balance of power

Election 2015: A dead heat between Mr Bean and Dick Dastardly!

Lord Ashcroft reveals latest polling – and which character voters associate with each leader
Audiences queue up for 'true stories told live' as cult competition The Moth goes global

Cult competition The Moth goes global

The non-profit 'slam storytelling' competition was founded in 1997 by the novelist George Dawes Green and has seen Malcolm Gladwell, Salman Rushdie and Molly Ringwald all take their turn at the mic
Pakistani women come out fighting: A hard-hitting play focuses on female Muslim boxers

Pakistani women come out fighting

Hard-hitting new play 'No Guts, No Heart, No Glory' focuses on female Muslim boxers
Leonora Carrington transcended her stolid background to become an avant garde star

Surreal deal: Leonora Carrington

The artist transcended her stolid background to become an avant garde star
LGBT History Month: Pupils discuss topics from Sappho to same-sex marriage

Education: LGBT History Month

Pupils have been discussing topics from Sappho to same-sex marriage
11 best gel eyeliners

Go bold this season: 11 best gel eyeliners

Use an ink pot eyeliner to go bold on the eyes with this season's feline flicked winged liner
Cricket World Cup 2015: Tournament runs riot to make the event more hit than miss...

Cricket World Cup runs riot to make the event more hit than miss...

The tournament has reached its halfway mark and scores of 300 and amazing catches abound. One thing never changes, though – everyone loves beating England
Katarina Johnson-Thompson: Heptathlete ready to jump at first major title

Katarina Johnson-Thompson: Ready to jump at first major title

After her 2014 was ruined by injury, 21-year-old Briton is leading pentathlete going into this week’s European Indoors. Now she intends to turn form into gold
Syrian conflict is the world's first 'climate change war', say scientists, but it won't be the last one

Climate change key in Syrian conflict

And it will trigger more war in future
How I outwitted the Gestapo

How I outwitted the Gestapo

My life as a Jew in wartime Berlin
The nation's favourite animal revealed

The nation's favourite animal revealed

Women like cuddly creatures whilst men like creepy-crawlies
Is this the way to get young people to vote?

Getting young people to vote

From #VOTESELFISH to Bite the Ballot