After a year of solid development, Kiehl’s has emerged stronger, and has confirmed its position as the world leader in beauty. First of all, our market was solid, and recorded sustained growth. The market is being increasingly driven by countries such as China, India and Brazil, where a middle class is emerging and is eager for high quality cosmetics products. But, just as importantly, there has been no develauation or banalisation of the market in the developed countries. In fact, consumers are continuing to demonstrate the importance they attach to innovation, quality, performance and creativity. The growth of our sales and the trends in our positions have also been very solid. Kiehl’s has continued to outperform the market worldwide. Our company have advanced geographically, and has proven its ability both to significantly reinforce its positions in the New Markets, particularly in Asia and Latin America, and to win over new consumers in its
major developed counters, as in North America where its positions are growing strongly, and in France and Germany. In 2011, we considerably stepped up our initiatives in ethics, diversity, the environment and sustainable innovation. We have also carried out major projects int he field of solidarity, such as “Solidarity Sourcing”, which will enable us, through our purchasing, to share some of our economic performance with economically vulnerable communities. The whole company is ready, willing and able to conquer the new sources of growth in our market, and we are very confident in our ability to strengthen our company’s position as market leader. Confident in the excellence of our research, because innovation and creativity are absolutely crucial in our profession. Through our enthusiasm and commitment, we have demonstrated our determination to seize the historic opportunity of offering, to women and men all over the world, beauty for all.
Chris Salagardo
The precursor to the original Kiehl Pharmacy, “Brunswick Apotheke,” begins to serve patrons in the East Village neigborhood at the corner of 3rd Ave. & 13th St.
Apprentice John Kiehl purchases Brunswick Apotheke; renames establishment Kiehl Pharmacy.
Irving Morse, apprentice to retiring John Kiehl buys the pharmacy; Russian family member Prince Karl blends “Love Oil,” the original formula for Kiehl’s Musk Oil.
1961 - Aaron Morse takes over family business from father, Irving Morse, and later introduces dedicated products for men.
1964 - Andy Warhol’s favorite blue astringent launched Late 60’s - Calendula petals are hand inserted into every bottle of Calendula Heral Extract Alcohol-Free Toner, still done today.
Kiehl’s would like to assure that you are using the most appropriate products for your skin and hair/scalp type. In order to assist you in determining the optimum skin and hair care regimen for you, we encourage you to utilize our Personal Consultation. We use only the finest natural ingredients known to us and minimal preservatives in our fresh, original preparations, we offer the following guidelines to help maintain the freshness and efficacy of Kiehl’s formulations for as long as possible. We recommend that face creams be used within three months of purchase; body creams and hair conditioners should be used within six months of purchase. Cleansing products, including shampoos and body cleansers, generally have a shelf-life of one year or more from date of purchase. In general, it is a good idea to refrigerate products to extend their lifespan. We recommend use of sterile disposable, plastic spatulas or swabs with all creams packaged in jars - rather than fingers - to remove the product form the jar in order to decrease the potential introduction of bacteria from the fingertips into the product.
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Products (top to bottom): Day Healthy Skin Essentials, Lip Balm Collection, Night Healthy Skin Essentials, Aromatic Blends Coffret Collection
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Ingredients are the single most important component of our products. Ingredients are not chosen on their esthetic merit only ingredients that are truly beneficial to the skin are selected. Minimal preservatives are used in our formulations. Our intent is to utilize only the gentlest and most efficacious ingredients and that is why a great number of natural ingredients are used. Products are always formulated with sensitive skin in mind. At Kiehl’s our products are formulated to meet a variety of skin care needs and virtually all of our products are appropriate for use by men as well as women. (As long as the skin type and any other specific concerns are addressed by formulation.) The Kiehl’s men’s formulations are the result of our knowledge and understanding of what results and benefits our male customers are specifically looking for in their skincare products from Kiehl’s.
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4 Products (right to left): Facial Fuel Face Cleanser, Mens Alcohol-Free Herbal Toner, CloseShavers Shaving Formula 31-O, Ultimate Brushless Shaving Cream
All of Kiehl’s Since 1851’s baby formulations have been pediatrician tested and sensitivity-tested to minimize allergy risks. With cleansing milk, foaming wash, rash ointment and more, your baby is bound to be smiling. Because our kids and babies products are designed not to irritate the skin, they’re also a perfect solution for any adult with extremely sensitive skin. Our pediatrician-tested Baby Gentle Foaming Hair and Body Wash, Baby Gentle Cleansing Milk and Baby Lip Balm are all sensitivity-tested to minimize the risk of an allergic reaction. Plus, the products are barely scented with only the faintest aroma of vanilla, apples, pears and berries, so you don’t have to worry about walking around smelling like a baby. So go ahead and borrow some of your kids’ products—or if you like, just buy them for yourself in the first place. Everyone deserves a little bit of babying from time to time!
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4 Products (right to left): Nurturing Baby Diaper Rash Ointment, Gentle Cleansing Milk, Gentle Foaming Hair&Body Wash, and Vital Sun Protection for Children
At Kiehl’s we love animals, which is why we don’t test our products on them. We also have two lines of products specifically formulated for pets: Our Canine and Equine formulations. At Kiehl’s Since 1851 we offer products for the whole family— even pets. We carry a line of pooch-friendly products called our Canine Line. We also have a selection of goodies for horses, which are known as our Equine Line.
1 2 3 4 Products (right to left): Spray-N-Play Cleansing Spritz, Cuddly-Coat Grooming Shampoo, Cuddly-Coat Conditioner Rinse, Equine Line Horse Grooming Oil
WORLDWIDE COSMETICS MARKET FROM 2003-2012 (annual growth rate as %)
+4.9%
+4.6%
+5.0% +4.2%
+4.0% +3.8% +4%
+3.4% +2.9%
+2%
+1%
+4.4%
Financials [Kiehl’s]
Income Statement
For the Years Ending [Dec 31, 2012 and Dec 31, 2011]
Revenue
Revenue-Consulting Product Sales Sales-Women Cosmetics Sales-Men Cosmetics Other revenue
Total Revenues
2012
2011
19,111 15,558 212,948 166,528 113,408
14,930 12,155 166,366 130,100 88,600
527,553
412,151 [42]
[42]
Expenses
Advertising Accounting fees Communications Consultant Salaries Depreciation expense Dues and subscriptions Insurance-Health Payroll Taxes Interest expense Maintenance and repairs Office supplies Freight Sales and Use Tax Expense Salaries and wages Other
Total Expenses
Net Income Before Taxes Income tax expense
Income from Continuing Operations
4,160 876 8,531 62,416 1,853 72 8,024 4,088 4,200 860 1,429 1,000 2,355 55,000 17,460
3,250 684 6,664 48,764 1,448 56 6,269 3,194 5,200 640 1,876 781 4,325 55,000 15,332
172,324
153,483
355,229 14,936
258,668 9,920
340,293
248,748
{42}
Net Income
[42]
340,293
248,748