NEW YORK (TheStreet) -- Shares of Elizabeth Arden, Inc. (RDEN - Get Report) are down -3.99% to $27.17 after announcing a restructuring program that will eliminate jobs and close its Puerto Rico affiliate, Bloomberg reports.
The company, which reported a surprise loss last quarter, will incur $65 million to $72 million in pretax expenses through fiscal 2015, according to a filing today.
The program should lead to annual savings of about $50 million when completed, Arden said.
- The debt-to-equity ratio is somewhat low, currently at 0.81, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.08, which illustrates the ability to avoid short-term cash problems.
- 44.32% is the gross profit margin for ELIZABETH ARDEN INC which we consider to be strong. Regardless of RDEN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RDEN's net profit margin of -12.54% significantly underperformed when compared to the industry average.
- ELIZABETH ARDEN INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, ELIZABETH ARDEN INC reported lower earnings of $1.33 versus $1.92 in the prior year. For the next year, the market is expecting a contraction of 91.7% in earnings ($0.11 versus $1.33).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Personal Products industry. The net income has significantly decreased by 1977.2% when compared to the same quarter one year ago, falling from -$1.27 million to -$26.44 million.
- You can view the full analysis from the report here: RDEN Ratings Report