Ahead Of The Bell: Elizabeth Arden

NEW YORK (AP) — The worst may be over for Elizabeth Arden Inc., an analyst said Friday, but its stock might not log more gains until closer to the holiday season.

Late Thursday, New York-based Elizabeth Arden said it posted a smaller fiscal fourth-quarter loss, but warned going forward that retailers are unlikely to boost their purchases significantly.

For the year, Elizabeth Arden, whose brands include celebrity fragrances Elizabeth Taylor and Mariah Carey,

anticipates modest sales increases of 2 percent to 3.5 percent for 2010, with earnings ranging between 50 cents and 65 cents per share for the year, which is below Wall Street's average forecast.

Analysts expect 72 cents per share, according to Thomson Reuters.

RBC Capital Markets analyst Jason Gere raised his price target by $1 to $9, expecting improved sales growth in fiscal 2010.

"While we are encouraged that the worst may be in the past and that trends can improve as we move through the year, Elizabeth Arden's fiscal second-quarter really holds the key for the stock," Gere wrote in a client note, referring to the holiday quarter.