Dessert Beauty Profits?

Question

Does anyone know how much money the dessert beauty line by jessica simpson made?

Answer 1

Well this is a tricky question.

You can't really estimate the profits precisely, because of so many companies involved and the fact that you don't know the cost to make each product, and how much it has sold so far.

What you can do, is use a series of logical steps to guesstimate.

1. Who owns that line other than Simpson?
Answer: Sephora and D'Lish
Sephora is owned by LVMH - Louis Vuitton Moët Hennessy Group
D'Lish is owned by ..... ?

2. Get some rough financial figures to figure out how much profit the line made.

LVMH made 2519 million Euros in 2006 in Perfumes and Cosmetics
But this includes the entire take from Sephora, any LV cosmetics, etc.

So now, to do a rough guesstimate of the total revenues for that particular line, you need to do the following.

1. Assume Sephora is the only perfume/cosmetics "line" or brand to represent as a proxy, for that total 2519

2. Estimate a percentage of Sephora's total revenues that come JUST from Jessica's Line (probably 1% I'd wager, or much less Maybe 0.25%. They're low priced items, and most Sephorians buy things like Biotherme, Clinique, Tarte, MAC, etc), and the Dessert Line is really bombing especially coming under fire from 2 lawsuits so far.

3. Multiply your % x 2519 million Euros = and see if that number makes sense.

And you get total revenues.

Now profit is much trickier.. how would you calculate the actual skimming she takes home? Well, minus expenses (like advertisement, marketing, cost of goods sold), you might end up with a profit margin of maybe 10%. I'm totally guessing here, it depends on the cost of the actual product and how much they sell it for.

Take that profit percentage, and multiply it out with that final "revenue" number you got, and that's how you can guesstimate how much money the line has made.

Alternatively, if you can think of a beauty lotions company similar to the price range of the Dessert line (maybe Bonne Bell or something like that), and if they're publicly traded, go to:

www.sec.gov

And search for that company name. Take a look at their financial statements, see how much profit they're making, and use THOSE profit percentage numbers and apply it to the guesstimated Dessert Beauty Revenues