Shares of Physician's Formula took a nosedive after the company reported a loss for the first quarter and revealed that one of its major customers is dumping the brand. Sales fell 52.7% during the quarter.
The company also revealed Monday that one of its largest retail customers, which accounted for 15.8 percent of its gross sales last year, decided in April to discontinue Physicians Formula at its stores in 2010.
Jackel declined to name the retailer, but told WWD the discontinuance was a surprise.
"All our accounts are very sophisticated, and so are we, in measuring performance year-over-year," she said. "If you look at sheer performance, there is no reason that you wouldn't want us in your stores."
Although Jackel declined to name the retailer in question, reports have been circulating in the market that Walgreens was on the verge of dropping Physicians Formula. Visits to some stores revealed that the line was being marked down considerably. A spokeswoman at Walgreens could not be reached for comment at press time.
Being dumped by Walgreens is a bad sign for the cosmetics company. It's unclear what brand will be replacing Physician's Formula in the stores, but we wouldn't be surprised if an announcement happens in the near future.
Shares of Physician's Formula took a 
