Elizabeth Arden announced it has acquired the global licenses and certain related assets for the Ed Hardy, True Religion and BCBGMAXAZRIA fragrance brands from New Wave Fragrances, LLC.
Originally introduced in 2008 and inspired by the tattoo art of Don Ed Hardy, the Ed Hardy fragrance portfolio has expanded and now also includes the Love & Luck, Hearts & Daggers and Ed Hardy Born Wild men's and women's fragrances. The True Religion fragrance launched in U.S. department stores in October 2008 and has now expanded to a portfolio of brands, and the BCBGMAXAZRIA women's fragrance debuted successfully in the fall of 2011 at U.S. department stores.
Terms of the transaction were not disclosed. Elizabeth Arden currently expects the transaction to be accretive to earnings in fiscal 2013 and will provide further discussion and guidance for fiscal 2013 during its fourth quarter and fiscal year 2012 conference call in August 2012.
Additionally, Elizabeth Arden expects minimal impact to its fiscal 2012 financial results ending June 30, 2012 as a result of the transaction and is confirming its fiscal 2012 guidance for net sales growth of 5% to 5.5% over the prior fiscal year, net income per diluted share of $1.95–2.00 and a gross margin increase of 200–250 basis points over fiscal 2011. This guidance excludes any expenses related to this transaction incurred in its fourth quarter of fiscal 2012.