Claiborne deal hits Arden’s fiscal 2008 income
Elizabeth Arden has announced uninspiring results for the fourth fiscal quarter and year ended 30 June 2008. For the fiscal year, net sales rose 1.2% to $1,141.1m. Excluding the favourable impact of foreign currency, net sales decreased 0.4%. Net income, excluding charges, for fiscal 2008 was only $38.1m, as opposed to $39.1m for fiscal 2007.
Elizabeth Arden has announced uninspiring results for the fourth fiscal quarter and year ended 30 June 2008. For the fiscal year, net sales rose 1.2% to $1,141.1m. Excluding the favourable impact of foreign currency, net sales decreased 0.4%. Net income, excluding charges, for fiscal 2008 was only $38.1m, as opposed to $39.1m for fiscal 2007.
In May, the company agreed to an exclusive long-term global licensing agreement for the Liz Claiborne fragrance brands, the transaction expenses for which cost $19.6m. In addition Elizabeth Arden discontinued certain products resulting in a product discontinuation charge of $7.5m.
The reaction from Elizabeth Arden Inc chairman, president and ceo, E Scott Beattie was fairly positive. “We finished the year in-line with the expectations that we outlined last quarter. Our international business grew 9.2% or 4.2% in constant currency rates this year,” he said.
However, he continued: “Our North America fragrance business declined 1.5%, largely due to the decline in the US department store business, while our mass retail was flat year on year, reflecting the difficult consumer environment.”
Beattie predicts that Elizabeth Arden will fare well in fiscal 2009, reflecting the integration of the Liz Claiborne fragrance brands into the company. It will also benefit from product launches including Juicy Couture’s Viva la Juicy, the company’s first fragrance under its Rocawear licence, new scents from Mariah Carey and Usher, and a spring launch of a new Elizabeth Arden fragrance.