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International and Domestic Sales Both Increase for Elizabeth Arden
Posted: August 9, 2012
Elizabeth Arden, Inc. announced financial results for its fourth fiscal quarter and fiscal year ended June 30, 2012. For the quarter, the company reported net sales of $265.5 million, an increase of 4.6%, as compared to the fourth quarter of the prior fiscal year. Excluding the unfavorable impact of foreign currency translation, net sales increased by 8%.
For the year ended June 30, 2012, the company reported net sales of $1.238 billion, an increase of 5.3%. The impact from foreign currency translation on net sales was immaterial as compared to the prior fiscal year. On an adjusted basis, net income per diluted share for fiscal 2012 was $2.07 as compared to $1.56 for fiscal 2011. On a reported basis, net income per diluted share was $1.91, as compared to $1.41 for the prior fiscal year.
Net sales for Elizabeth Arden's international segment increased by 9.8%, or 9.4% at constant rates, over the prior fiscal year, and net sales in the company's North America segment grew by 2.9%. Sales growth was broad based across the company's international businesses and was strongest in its European, travel retail and emerging markets. Net sales growth in North America benefited from the strong sales performance in the company's prestige business.
E. Scott Beattie, chairman, president and CEO of Elizabeth Arden, Inc., commented, "This was an important year for our company as we reported another year of solid earnings growth and margin expansion, while significantly advancing our key initiatives. For fiscal 2013, we expect strong sales growth and another year of improved operating performance."
Beattie continued, "Consistent improvement in our operational metrics continues to be driven by the building blocks of our Global Efficiency Re-engineering initiative that has created an efficient and scalable global operational platform. This, combined with tremendous efficiency in working capital management, bodes well as we grow our business. As we look ahead, our priorities are focused on accelerating the global growth of the Elizabeth Arden brand, expanding sales of our fragrance portfolio, particularly in Europe, integrating and growing our newly acquired fragrance brands, and continuing to drive operational efficiencies. These are the key initiatives driving our margins, earnings and return on invested capital over the next several years."
For fiscal 2013, net sales are expected to increase by 13.5–15% over the prior fiscal year. Earnings per diluted share are expected to be in the range of $2.55–2.70. Gross margin for fiscal 2013 is expected to increase by 175–200 basis points as compared to gross margin (adjusted) for fiscal 2012. For the first quarter of fiscal 2013, the company expects net sales of $330–340 million as compared to $303.5 million of net sales for the first quarter of the prior fiscal year. Earnings per diluted share are expected to be in the range of $0.38–0.43. For the first half of fiscal 2013, the company expects net sales of $825–840 million as compared to $733.5 million of net sales for the first half of the prior fiscal year. Earnings per diluted share for the first half are expected to be in the range of $1.98 to $2.08. The earnings guidance excludes non-recurring charges related to the Elizabeth Arden brand repositioning as well as expenses related to the recently completed fragrance license acquisitions.