Elizabeth Arden, Inc. (NASDAQ: RDEN), a global prestige beauty products company, today announced financial results for its fourth fiscal quarter and fiscal year ended June 30, 2013.
FISCAL 2013 RESULTS
For the fiscal year ended June 30, 2013, the Company reported net sales of $1.345 billion or an increase of 8.6% as compared to the prior fiscal year. At constant rates, net sales increased by 9.6%. On a reported basis, net income per diluted share was $1.33. On an adjusted basis, net income per diluted share was $2.14, as compared to net income per diluted share of $2.07 for the prior year period. Adjusted net income per diluted share excludes non-recurring costs relating to the Elizabeth Arden repositioning and the fiscal 2012 fragrance brand acquisitions. A reconciliation between GAAP and adjusted results can be found in the tables and footnotes at the end of this press release.
In North America, net sales increased 10.2% over the prior fiscal year, and net sales for the Company’s international segment increased by 8.4% (at constant rates). Net sales of fragrances in the international segment increased 14% (at constant rates) for fiscal 2013 behind the Company's Western European fragrance initiative and expansion into new markets.
The Company continued to see success with the Elizabeth Arden repositioning. Retail sales at the Company's Elizabeth Arden flagship counters have increased 20% in North America year over year since conversion, and retail sales at the Company’s international flagship doors have increased 17% in the aggregate since conversion. These increases are driven by the retail sales performance of skin care and color products.
E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc., commented, “There were two primary factors that caused our sales and earnings results to be below our expectations in fiscal 2013. The first was due to weakness at one of our largest North American mass retail customers, both in terms of retail sales performance and replenishment rate. The second factor was that are growth projections for the Elizabeth Arden brand proved to be overly optimistic given the complexity and scope of transition underway for the brand repositioning. We remain confident in our repositioning efforts and, in fact, are accelerating the execution of the Elizabeth Arden brand repositioning. We expect to incur the final phase of repositioning expenses, including eliminating pre-repositioned product inventory and exiting unprofitable doors, in fiscal 2014. While resulting in near term charges, this is expected to drive improved performance of the Elizabeth Arden brand going forward. Separately, we are taking steps to improve efficiencies in our sales organizations and in the overall indirect overhead structure.”