Check out women cutting back on some beauty needs due to the economic slowdown.

Cosmetics maker Estee Lauder Cos Inc blamed a weak retail environment for its lower quarterly profit on Tuesday due to weakness in its fragrance and hair-care businesses.

Those results come on the heels of Elizabeth Arden Inc’s surprising quarterly loss, which the fragrance maker blamed on lower sales of its cosmetics. Arden, known for its Red Door fragrance and spas, also lowered its full-year outlook due to tougher-than-expected sales trends in North America.

But unlike Arden, Estee Lauder believes it can withstand weakening consumer spending in the U.S. The New York-based company raised the bottom end of its full-year forecast range.

Also in the basket:

Molson Coors profit rises

Yum Brands ups dividend

 Burger King says stockholders to offer shares

American small business owners are a resolute lot, pushing ahead with plans to grow their operations despite losing a large chunk of sales to soaring energy costs, an American Express OPEN survey showed on Friday.

Ironically, most are also day-dreamers who look on the bright side , the survey added.

Although only 45 percent of U.S. small business owners are optimistic, — a sharp drop from 2004 – more than 70 percent plan to grow their businesses over the next six months, the survey said. Half of them are willing to take on added financial risk to get it done.

It’s not surprising then that the survey showed nearly 9 of 10 small business owners describe themselves as “seeing the glass half-full.” And despite the growing economic uncertainty throughout the nation, the survey said 75 percent of small business owners would still recommend a friend or family member become an entrepreneur.

Nevertheless, some small business owners see the glass half-empty.

Retail business owners have the most negative outlook, with nearly half expecting the economic environment to hurt their prospects, the survey said. One in five small businesses in states located in the northern midwest think they’re in jeopardy of going under.

And 56 percent of small businesses are having cash flow problems, according to the survey.

Check out Sharper Image Corp — the struggling maker of $240 shavers and $170 toothbrushes — looking to follow in the footsteps of Wendy’s International Inc.

Wendy’s, the No. 3 U.S. hamburger chain behind McDonald’s Corp and Burger King Holdings Inc, sold itself on Thursday to the investment arm of billionaire investor Nelson Peltz in a deal valued at about $2.4 billion.

Sharper Image, whose expensive gadgets have fallen out of favor in a weak economic environment, put itself up for sale in a bid to survive just two months after filing for Chapter 11 bankruptcy protection.

It may be on the block for a while. After Wendy’s put itself on the block in June,  money to finance such deals has dried up as the U.S. housing meltdown and global credit crisis have pinched big banks and other sources of cash.

Also in the basket:

Whirlpool sets new price increases due to higher costs

Coke Enterprises sees ‘08 sales volumes rising

Safeway profit boosted by fuel, Easter

In his letter to shareholders, Sears Chairman Ed Lampert compared the company’s struggling Kmart chain to New York Giants quarterback Eli Manning, the most valuable player of Super Bowl XL II.

But with sales at established stores falling 5.2 percent during the fourth-quarter, Kmart’s performance was hardly championship worthy.

In fact, it was more like Manning’s abysmal November performance against the Minnesota Vikings, when he threw four interceptions in a 41-17 loss that had fans and local media calling for his head. 

Lampert told shareholders that Kmart is working to rise to prominence against tough competition, much like Manning did following his abysmal performance against the Vikings.

“He remained focused, continued to work hard on his game and on improving his skills,” Lampert wrote. “Like Manning, we know what it’s like to be underestimated and questioned, but we intend to keep working on our game to achieve our full potential.”

Check out Sears Holdings Chairman Ed Lampert pledging in a letter to shareholders to take a more conservative approach to inventory in 2008 after last year’s aggressive posture backfired, wrecking the retailer’s earnings and profit margin.

“Unfortunately we did not forsee the severe economic turbulence ahead … 2007 was not a good year in which to operate with increased inventory,” Lampert wrote.

Like many retailers, Sears struggled last year in a marketplace that saw shoppers pull back their spending in the wake of declining home values, rising grocery bills, and higher energy costs.

Sears’ plan took a hit as sales declined, forcing the company to turn to aggressive discounting to clear inventory.

Lampert has no plans of a repeat performance in 2008.

 ”Our current plan is to take a more conservative approach in 2008,” Lampert wrote. “We are currently planning for reduced inventory purchases in 2008, especially in spring/summer and fall/winter season apparel categories.”

Also in the basket:

Limited cuts real estate deals, sees margins off

Revlon posts fourth-quarter profit vs loss

 (Photo: Reuters)

MGA Entertainment is moving the catwalk to the toy box.

The toy maker — whose Bratz dolls have engaged Mattel’s Barbie in a fierce battle for young girls’ loyalties – will roll out dolls based on the hit reality television show America’s Next Top Model this spring.

And just like the contestants on the show, — who are judged by executive producer Tyra Banks — each doll comes with its own story which explains why they’re pursuing modeling.

MGA said the dolls are not modeled after, or based on anyone who’s been on the show. 

America’s Next Top Model, which has been on the air since May 2003, is the top rated show on the CW, averaging 5.2 million viewers a week for the season to date.

(Photo: MGA Entertainment) 

Check Out investors bailing on cash-strapped electronics retailer Sharper Image Corp after the company filed for Chapter 11 bankruptcy protection following three straight years of losses.

Its stock plunged to a lifetime low after the company announced it only had $700,000 in cash on hand.  According to court documents, Sharper Image said it had $251.5 million in assets and $199 million in debt as of Jan. 31.

Things have gotten so bad for Sharper Image that many of its vendors and suppliers have taken to requesting cash upon delivery of products, court papers show.

But the company isn’t quite ready to throw in the towel.

Sharper Image is seeking a $60 million loan arranged by Wells Fargo Retail Finance LLC to keep operating, according to court papers. And it replaced Chief Executive Steven Lightman with Robert Conway last week.

Also in the basket: 

Wendy’s CEO hopes new items will spur sales

TJX shares rise after higher profit, outlook

Sony wins format war, but real battle lies ahead

Heineken avoids 2008 forecast, shares drop

(Photo: Reuters)

Check Out penny-pinching U.S. shoppers helping push Wal-Mart to a better-than-expected fourth-quarter profit.

Cash-strapped U.S. consumers, who have been enduring falling home values and rising grocery and energy bills, turned to Wal-Mart’s discount stores for low prices on necessities like food.

The world’s largest retailer has cut prices in a bid to win sales in a tough economic environment, and Telsey Advisory Group analyst Joseph Feldman said the company is well-positioned to succeed in the current climate.

“They’ve got a lot of consumable items, like groceries, so they’re going to drive traffic and maybe get additional traffic because of this environment.”

Also in the basket:

Staples in $3.7 bln offer for Corp. Express

Fossil 4th-qtr profit rises; forecast above view

Consumers seen shrugging off big beef recall

Steven Madden profit down, but buyback lifts stock

Foodmakers squeezed by costs, strapped consumers

(Photo: Reuters)

Check Out weakening consumer spending in the U.S. and its impact on everything from diamond rings to cheeseburgers.

Upscale jeweler Tiffany & Co said on Friday that it’s being “cautious” about expectations for its U.S. business for the first half of the year, while McDonald’s Corp said its domestic sales growth lagged far behind the rest of the world last month.

Both companies appear as if they’ll rely heavily on their overseas units this year as consumer spending in the U.S. steadily slows due to the rising costs of stocking the fridge, heating a home, and driving a car.

Even a fast-food joint like McDonald’s isn’t immune to the slowdown, though it did show a rebound from December. The company said same-store sales in January rose 1.9 percent in the United States, compared with an 8.2 percent rise in Europe. The Asia/Pacific, Middle East and Africa unit reported same-store sales growth of 7.8 percent.

Meanwhile, Tiffany – which forecast a 10 percent rise in worldwide net sales –  issued a better forecast for its international segment than its U.S. business. It expects international retail sales to see mid-teen percentage growth, on a mid-single digit increase in same-store sales.

It expects the U.S. business to generate a high single-digit percentage increase in U.S. retail sales, on a low single-digit rise in same-store sales.

Also in the basket:

Recession to be longer than usual

U.S. downturn to hit tech hardware more than software

(Reuters Photo)  

Check out Wendy’s International Inc, which has sought a buyer for nearly a year,  using cost-savings to post a higher quarterly profit while sales of its burgers fell.

The No. 3 U.S. hamburger chain behind McDonald’s and Burger King said sales at established restaurants declined as consumers bought less food outside the home due to soaring grocery bills, rising fuel costs, and falling home values.

Each of those factors helped drive down domestic results at McDonald’s and Starbucks – which issued a pessimistic outlook last week and said that a consumer recession was likely.

Wendy’s also disclosed plans for a new advertising campaign, a week after ditching its “That’s Right” ads, which featured various pitchmen donning its trademark red wigs.

“Each television spot opens and closes with an animated version of our familiar logo - the enduring image of Wendy, a red-headed little girl,” Chief Executive Kerrii Anderson said of the new, ”Waaaay Better” ad campaign.

Also in the basket:

Walgreens January same-store sales rise

Clorox 2nd-quarter net profit falls

ADM 2nd-quarter profit rises

(Photo: Reuters)