Alexander McQueen Fragrances from P&G - Analyst Blog

By Zacks | June 21, 2013 AAA

The Procter & Gamble Company (PG) recently entered into an agreement with Alexander McQueen to manufacture and sell fragrance products. The fragrance products will be produced by P&G Prestige and will be sold under the Alexander McQueen brand.

Alexander McQueen is a popular brand in the global fashion market and has a huge customer base. The introduction of P&G’s fragrance products under such a popular brand as Alexander McQueen will strengthen the former’s position in the luxury fragrance category. P&G will also benefit from Mc Queen’s existing customer base.

P&G Prestige already has some of the strongest beauty brands such as Hugo Boss, Dolce&Gabbana, Gucci, Lacoste and Puma. In fact, the collaboration with Alexander McQueen is in line with Procter & Gamble’s long-term strategy of business expansion through tie ups with strong brands.

Overall, we are encouraged by P&G’s strong brand recognition, diversified portfolio, rapid growth in developing nations, impressive product development capabilities and marketing prowess. Though fiscal 2012 turned out to be a tough year for P&G, the company plans to implement some meaningful changes to re-accelerate its top and bottom line. However, we would remain on the sidelines until we witness further progress from the turnaround efforts.

Procter & Gamble currently carries a Zacks Rank #3 (Hold).

Other companies in the consumer staples sector that warrant investor attention include Zep, Inc. (ZEP), Flower Foods Inc. (FLO), and B&G Foods Inc. (BGS). Flower Foods and B&G Foods both carry a Zacks Rank #1 (Strong Buy), whereas Zep carries a Zacks Rank #2 (Buy).

You May Also Like

Related Analysis
  1. Stock Analysis

    Qihoo 360 Technology Inks Strategic Deal with Coolpad - Analyst Blog

  2. Stock Analysis

    Cousins Properties Inks Deal to Sell 777 Main in Fort Worth - Analyst Blog

  3. Stock Analysis

    Is It Safe to Buy? - Video Blog

  4. Stock Analysis

    JLL Credit Rating Upgraded to Investment Grade by S&P - Analyst Blog

  5. Stock Analysis

    athenahealth (ATHN) Thrives on Customer Wins and Alliances - Analyst Blog

Trading Center