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Fragrance Launches Help Buoy Quarterly Results for Elizabeth Arden
Posted: November 5, 2012
Elizabeth Arden, Inc. announced financial results for its first fiscal quarter ended September 30, 2012. For the quarter ended September 30, 2012, the company reported net sales of $344.5 million, an increase of 13.5%, as compared to the first quarter of the prior fiscal year. Excluding the unfavorable impact of foreign currency translation, net sales increased by 16.1%.
On a reported basis, net income per diluted share for the current year period was $0.07. On an adjusted basis, net income per diluted share for the quarter ended September 30, 2012 was $0.44, as compared to net income per diluted share of $0.31 for the prior year period.
Net sales for the company's international segment increased by 2.2%, or 8.8% at constant rates, over the prior fiscal year, and net sales in the company's North America segment grew by 20%. Net sales growth in North America benefitted from several new fragrance launches. Internationally, sales growth was strongest in the company's European and emerging markets. Sales of Elizabeth Arden branded products decreased by 5.1%, or 0.9% at constant rates, as compared to the prior year and reflect the company's continued wind down of retailer inventory in advance of the broader roll-out of the Elizabeth Arden brand repositioning.
E. Scott Beattie, chairman, president and CEO of Elizabeth Arden, Inc., commented, "We have begun the year strongly, reporting double digit growth in net sales and adjusted earnings per share. Although early in the roll-out, we are experiencing strong retail sales performance at the flagship doors with our revitalized Elizabeth Arden products. As we look forward to the holiday season, we believe that our significant innovation along with the continued roll out of Elizabeth Arden branded products has us well positioned to continue our positive performance."
The company is confirming its guidance for the first half of fiscal 2013 of net sales of $825–840 million and earnings per diluted share of $1.98–2.08. For the second quarter of fiscal 2013, the company expects net sales of $480–495 million as compared to $430 million of net sales for the second quarter of the prior fiscal year. Earnings per diluted share for the second quarter of fiscal 2013 are expected to be in the range of $1.54–1.64. The company is also confirming its guidance for fiscal 2013 for a net sales increase of 13.5–15% over the prior fiscal year and for earnings per diluted share of a range of $2.55–2.70.