The board of directors also announced that it would be exiting low-return businesses and categories with the ultimate goal of improving the company’s bottom line and boosting profits.
Called the 2014 Performance Improvement Plan, the plan covers the exiting of certain areas of retail, together with a number of less lucrative fragrance license agreements, as well as changes in customer, distribution and supply chain relationships.
Discontinuing product lines and exiting Puerto Rico
It will also target the discontinuation of certain unprofitable product lines, together with the closure of its affiliate in Puerto Rico.
The company estimates that the cost of the latest initiative will result in pre-tax charges that will be incurred in the fourth quarter of fiscal 2014 of $65m - $72m, which is said to include an estimated $32m - $36m in future cash expenditure.
The latest round of restructuring is part of an ongoing program aimed to make the business more efficient, leaner and more profitable, and serves as part of aims to target annual savings of $40m - $50m.
Marketing officer resigns
The regulatory filing also included the news that Kathy Widmer, the company’s EVP and chief marketing officer has resigned from her position.
Widmer will remain at the company until the end of August, before which time a replacement is expected to be announced.