Elizabeth Arden Reports 3Q Loss Of $3.7 Million

NEW YORK (AP) — Cosmetics maker Elizabeth Arden Inc. on Thursday said it posted a smaller fiscal third-quarter loss, but results were still tugged lower by unfavorable exchange rates and higher expenses.

For the quarter ended March 31, Elizabeth Arden posted a smaller fiscal loss of $3.7 million, or 13 cents per share, compared with a loss of $3.8 million, or 14 cents per share, last year.

Excluding restructuring expenses for its global efficiency re-enginnering project, the company posted a 19-cent loss, compared with a 10-cent loss a year ago.

Sales slipped 3.4 percent to $203.5 million from $210.6 million because of unfavorable exchange rates.

Analysts polled by Thomson Reuters, who usually exclude one-time items from their estimates, expected a loss of 32 cents and sales of $201.8 million.

Chief Executive E. Scott Beattie said business has been slow in its travel retail business because of lower airline traffic. Beattie also said retailers are destocking their inventory, while credit remains tight for consumers.

Selling, general and administrative expenses rose 4 percent to $86.4 million from $83 million.

Fiscal 2009 sales are expected to decline, partly because of unfavorable exchange rates.