NEW YORK (TheStreet) -- Shares of Elizabeth Arden Inc.
(RDEN - Get Report) are retreating, down -23.81 to $14.94 on very heavy trading volume, after the beauty products company reported its biggest ever quarterly loss due to a steeper-than-expected fall in sales of celebrity perfumes, particularly the Justin Bieber and Taylor Swift brands, according to Reuters.
Fourth quarter sales dropped 28.4%, the steepest in a decade, and the company warned that the weakness, which started about a year ago, would continue for the next six months.
Must Read: Warren Buffett's 25 Favorite Stocks
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Net sales in fiscal 2014 were affected by fewer launches of perfumes, retailers reducing inventory, heavier discounting and the company's decision to prune the distribution of key brands, said CFO Rod Little on a conference call. Perfumes accounted for 78% of total sales in fiscal 2013.
Sales were down 13.4% in fiscal 2014, driven by a 14% drop in North America, which accounts for half on the company's business. About half the decline in the region was due to the fall in sales of its celebrity perfumes, Reuters
TheStreet Ratings team rates ELIZABETH ARDEN INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ELIZABETH ARDEN INC (RDEN) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income."
You can view the full analysis from the report here: RDEN Ratings Report
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts