Cosmetic Group Expects Loss Despite Sales Growth

Cosmetic Group USA Inc., a Sun Valley makeup manufacturer, said it expects to post a $450,000 loss in the fourth quarter despite increasing sales. The company attributed the expected loss to costs related to the launch of its new hair-care products business.

Cosmetic Group also said it plans to expand production of makeup by about 33% at the end of February in response to increased demand.

Cosmetic Group USA manufactures makeup under various brand names, including Victoria Jackson Cosmetics, which markets products using infomercials. Victoria Jackson contracts are expected to account for more than 25% of revenues in the most recent quarter.