Elizabeth Arden announces first quarter fiscal results
Elizabeth Arden, Inc., a global prestige beauty products company, today announced financial results for the first quarter ended September 30, 2007. Net sales increased 6.7% to $271.8 million for the three months ended September 30, 2007, from $254.8 million in the comparable period of the prior year. Net sales growth was driven by the global launch of the M by Mariah Carey fragrance, increased sales of prestige fragrances to U.S. mass retail customers and increased sales of Elizabeth Arden branded products in international markets. Excluding the favorable impact of foreign currency translation, net sales increased 4.0%.
Net income for the three months ended September 30, 2007 was $1.1 million, or $0.04 per diluted share, excluding charges primarily related to restructuring activities in the Company's European operations. This compares to a net loss in the same period last year of $0.4 million, or $0.02 per diluted share, excluding charges. On a reported basis, net earnings for the first quarter of fiscal 2008 were $0.01 per diluted share, compared to a net loss for the prior year period of $0.05 per diluted share.
E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc., commented, "We are pleased with our first quarter results, which were led largely by the strength of our international business. Net sales of our international business grew by 18% this quarter and 12% in constant currencies. Specifically, revenues in China and in emerging markets increased by 75% and 40%, respectively. We also delivered 15% sales growth and significant improvement in profitability in our European operations. These results were in part due to the strong performance of the Elizabeth Arden brand in international markets. With nearly 65% of the total sales of Elizabeth Arden-branded products sold internationally, we expect the positive momentum behind the brand to continue due to strong global economic growth."
"In North America, our U.S. mass business was up 14%, on top of strong comparable growth last year, and our U.S. Department Stores business declined by 25%, driven by the timing of launches and changes in the retail calendar. Much of this decrease is expected to be made up in the second quarter with the launch of Prevage Night Cream and the performance of the M by Mariah Carey and Britney Spears believe fragrances. It is important to note that the results in the first quarter for our U.S. Department Stores business were essentially on plan." (excerpt from CNN Money)
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