Elizabeth Arden, Inc. (NASDAQ:RDEN), a global prestige beauty products company, announced today preliminary unaudited financial results for its second fiscal quarter ended December 31, 2013.
The Company expects to report second fiscal quarter net sales of $415 million to $418 million and net income per diluted share of $1.13 to $1.16. On an adjusted basis, excluding non-recurring items, the Company expects to report net income per diluted share of $1.05 to $1.08. The non-recurring items include Elizabeth Arden repositioning and restructuring costs of $0.27 per diluted share and a one-time gain of $0.35 per diluted share related to the reversal of a contingent liability associated with an acquisition.
For the first half of fiscal 2014, net sales of Elizabeth Arden branded products increased by approximately 2%, and sales of fragrances decreased by approximately 10%, as compared to the prior year period. Retail sales of Elizabeth Arden branded products at U.S. department stores increased by 4%, which the Company believes is above the performance of the overall category. Net sales of the Company’s North America segment decreased by approximately 9%, and net sales of the Company’s international segment decreased by approximately 1%, as compared to the prior year period. The net sales percentages are on a GAAP basis.
E. Scott Beattie, Chairman, President and Chief Executive Officer commented, “While still solidly profitable, our second quarter results will be below our prior expectations primarily due to lower than anticipated net sales. Our results were significantly impacted by an increased level of highly promotional and discounted activity globally and weaker than anticipated holiday retail sales and replenishment orders at a number of our non-prestige retail accounts in North America. While we are disappointed with these results, we made the strategic decision in the quarter not to participate fully in the heavy promotional and discounted environment.”