The Procter & Gamble Company
) 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
Other companies in the consumer staples sector that warrant
investor attention include
Flower Foods Inc.
B&G Foods Inc.
). Flower Foods and B&G Foods both carry a Zacks Rank #1
(Strong Buy), whereas Zep carries a Zacks Rank #2 (Buy).
B&G FOODS CL-A (BGS): Free Stock Analysis
FLOWERS FOODS (FLO): Free Stock Analysis
PROCTER & GAMBL (PG): Free Stock Analysis
ZEP INC (ZEP): Free Stock Analysis Report
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