First quarter results saw net sales decline to $270.4m
Elizabeth Arden has announced its first fiscal quarter ended 30 September, which saw net sales decrease 20.5% to $270.4m, compared with the prior year. The net loss per diluted share for the quarter was $1.54.
Net sales of the Elizabeth Arden's North America and International segments declined by 23% and 17% (at constant currency rates), respectively. The company said these sales declines “were expected and reflect continued proactive tightening of distribution globally, particularly of Elizabeth Arden branded products, in an effort to improve pricing and gross margins, and lower sales of celebrity fragrances, which primarily impacted the Company’s North American business”.
E Scott Beattie, Chairman, President and Chief Executive Officer, said: “Our first quarter results were in-line with our expectations, with sales and earnings declines that we expected and forecasted. As we previously stated, fiscal 2015 is a rebuilding year and during the quarter we continued to advance the key elements of our turnaround plans.”
He added: “We recently established a joint venture with the Chalhoub Group in the Middle East to accelerate growth in that region and expect to establish an additional joint venture for Southeast Asia in 2015. The objective of both of these joint ventures is to accelerate the commercialisation of our brands in large, rapidly growing beauty markets with partners who have established sales and marketing infrastructures. Finally, with respect to our performance improvement plans, our indirect overhead savings were slightly ahead of budget for the first quarter and we remain committed to achieving a total of $40m to $50m of annualised savings.”