NEW YORK (TheStreet) -- Elizabeth Arden (RDEN) stock is tumbling on Monday after reporting a drastic drop in North American sales and as third-quarter net losses came in far wider than analysts expected. After the bell, shares had plunged 15.4% to $30.15.
Over the three months to March, the cosmetics company recorded a net loss of 84 cents a share and revenue of $210.84 million. Analysts surveyed by Thomson Reuters had forecast break-even earnings and revenue of $256.86 million.
Sales in the company's North America segment decreased 23% to $121.9 million, primarily a result of fewer fragrance launches this year compared to last.
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, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."
- You can view the full analysis from the report here: RDEN Ratings Report