Bare Escentuals Builds Momentum

SAN FRANCISCOBare Escentuals (NASDAQ:BARE), a mineral-based cosmetics company, continued to build momentum in its first year as a public company, as it reported sales and earnings increases for its fourth quarter (4Q) fiscal 2007 (FY07). Net sales in 4Q were $144.6 million, an increase of approximately 31 percent from $110.5 million recorded in the same period the year prior. Operating income was $49.9 million, up 36 percent from $36.6 million in the same period last year. Thus, 4Q net income climbed to $27.0 million, or $0.29 per diluted share, from $16.3 million, or $0.18 per diluted share, earned a year ago.

For FY07, net sales also jumped 30 percent, reaching $511.0 million, while operating income rose 22 percent to $169.0 million, compared to the previous year. Net income increased to $88.1 million, or $0.95 per diluted share from $50.2 million, or $0.65 per diluted share earned in 2006.

"We are very pleased with our fourth quarter financial results as we experienced continued strong brand momentum," said Leslie Blodgett, CEO, Bare Escentuals. "We attribute our performance to the great efforts put forth by our retail partners, suppliers, employees and, of course, the loyal community of Bare Escentuals customers. We intend to continue to build upon this momentum in 2008 by expanding our product offering and by increasing access to Bare Escentuals products both here and abroad."