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Elizabeth Arden Sales Up 10.5%
Posted: May 2, 2013
Elizabeth Arden, Inc. announced financial results for its third fiscal quarter ended March 31, 2013. The company reported net sales of $264.5 million, an increase of 10.5% as compared to the third quarter of the prior fiscal year. Excluding the unfavorable impact of foreign currency translation, net sales increased by 11.2%.
In North America, net sales increased 9.4% for the quarter and 12.2% fiscal year-to-date. Sales growth was driven by new launches, including Pink Friday Nicki Minaj, Justin Bieber's Girlfriend and Taylor Swift Wonderstruck Enchanted, and growth in existing fragrance brands, including the Juicy Couture fragrances.
Internationally, net sales grew 14% (at constant rates) for the third fiscal quarter and 11.1% (at constant rates) fiscal year-to-date. Net sales of fragrances in the international segment have increased 22% (at constant rates) for the third fiscal quarter and 16% (at constant rates) for the first nine months of fiscal 2013, behind the company's Western European fragrance initiative. Fragrance sales in Europe grew 33% (at constant rates) for the quarter and 22% (at constant rates) fiscal year-to-date.
Net sales of Elizabeth Arden branded products increased by approximately 1% (at constant rates) for the quarter and fiscal year-to-date on a global basis. Retail sales at the company's Elizabeth Arden flagship counters have increased 22% in North America year over year since conversion, and retail sales at the company’s international flagship doors have increased 18% in the aggregate since conversion. These increases are driven by the retail sales performance of skin care and color.
E. Scott Beattie, chairman, president and CEO of Elizabeth Arden, Inc., commented, "We continue to execute against our key growth initiatives. Sales of fragrances expanded strongly in all of our key fragrance markets this quarter. During the quarter, we opened our affiliate in Brazil and began commercial sales in that market in February. We also continue to be very excited with the traction we are seeing with the Elizabeth Arden brand repositioning and the momentum of retail sales increases in our Elizabeth Arden flagship doors. As we mentioned, the flagship model was established as a way for us to test, learn, and gather feedback on the repositioning of the Elizabeth Arden brand, as well as to build confidence in the growth potential of the brand with our key retail partners. Our focus is on extending key elements of the flagship model to drive the Elizabeth Arden brand on a global basis."
For its outlook, Elizabeth Arden is confirming its latest revenue and earnings guidance for fiscal 2013. For the full fiscal year ending June 30, 2013, the company expects net sales to increase by 9–11%, assuming an expected unfavorable impact from foreign currency of approximately 0.6%, as compared to the prior year period, and for adjusted earnings per diluted share to be in the range of $2.30–2.50.