Elizabeth Arden Lowers Outlook; Shares Slump

Cosmetic company Elizabeth Arden(RDEN Quote) forecast a gloomy full-year outlook despite better-than-expected third-quarter results.

The news sent shares down more than 7% to $7.91 in afternoon trading.

Arden expects to earn 38 cents to 50 cents a share in 2009, citing a stronger dollar, which is hurting overseas sales. Analysts were looking for full-year earnings of 73 cents.

The decline in travel could also harm the company's travel retail business, which accounts for about 5% of sales.

During the quarter, the company recorded a loss of $3.7 million, or 13 cents a share, compared with a loss of $3.8 million, or 14 cents a share, a year earlier.

Excluding restructuring and other expenses, Arden posted a loss of 19 cents a share. Analysts forecast a loss of 32 cents.

Sales fell 3.4% to $203.5 million, as more women cut back on discretionary beauty items.

Earlier this week, rival Estee Lauder(EL Quote) reported a 70% plummet in its quarterly profit, while Avon Products(AVP Quote) saw a 36% decline in its quarter.