Elizabeth Arden, Inc. (NASDAQ:RDEN), a global prestige beauty products company, announced today financial results for its second fiscal quarter ended December 31, 2013.
SECOND QUARTER RESULTS
Net sales for the second fiscal quarter were $418 million, a decrease of 10.6%, or 10.1% excluding the impact of foreign currency rates. Net income per diluted share was $1.16. On an adjusted basis, excluding non-recurring items, net income per diluted share was $1.08. The non-recurring items include Elizabeth Arden repositioning and restructuring costs and a one-time benefit related to the reversal of a contingent liability associated with an acquisition. A reconciliation between GAAP and adjusted results can be found in the tables and footnotes at the end of this press release.
Net sales of the Company’s North America segment decreased by 13% for the second fiscal quarter as compared to the prior year period. Net sales were impacted by weaker than anticipated holiday retail sales and replenishment orders at a number of North American mass and mid-tier retail accounts, in part due to decreased consumer traffic at those retailers, and a higher volume of fragrance launch activity in the prior year. Performance at prestige retailers was solid and in-line with expectations. Retail sales of Elizabeth Arden branded products in North American prestige retailers were strong, increasing by approximately 4%, which was better than the performance of the overall category.
Net sales of the Company’s international segment decreased by 5%, or 4% at constant currency rates, for the second fiscal quarter as compared to the prior year period. The Company’s Greater China region posted strong sales growth during the quarter, but weak performance in the Company’s European markets, where sales of fragrances were impacted by an increased level of highly promotional and discounted activity, drove the net sales decline for the quarter.