Bare Escentuals Completes Solid IPO, Sees Sales Soar

SAN FRANCISCO—After a successful initial public offering (IPO) in late September, mineral-based cosmetic company Bare Escentuals (NASDAQ:BARE) posted a third quarter (3Q) sales increase of 45 percent along with a 75-percent rise in operating income. Despite the gains, net income per share remained relatively flat year-over-year, settling down one cent to $0.12 per share or $8.9 million.

“We are very pleased with the results achieved during the third quarter of fiscal 2006,” said Leslie Blodgett, chief executive officer (CEO). “Our strong performance reflects Bare Escentuals’ continued growing brand awareness and the increasing consumer demand for our mineral-based products, and is a testament to the hard work and dedication of our entire organization.”

On Sept. 29, BARE shares were offered at $22 per share, significantly more than its $15 to $17 range and the stock opened at $28 per share. As of Nov. 9, shares were trading around $30. The IPO raised about $374 million in proceeds on 18.4 million shares of common stock, most of which was used to cover the company’s outstanding debt and to terminate management agreements with Berkshire Partners and JH Partners.

Blodgett said the company (www.bareescentuals.com) is delighted by its successful IPO and its prospects for the future. “Bare Escentuals pioneered the mineral-based cosmetics category and we believe that our leading market position, coupled with our solid relationships with our customers and reinforcing multichannel distribution strategies, provides us with multiple long-term growth opportunities, both domestically and internationally,” he said. “We plan to continue to selectively broaden our distribution and further increase brand awareness through media and customer-focused events.”