Mystic Man
Feb 3rd, 2005, 03:45 PM
http://biz.yahoo.com/prnews/050203/nyth040_1.html
Press Release Source: Elizabeth Arden, Inc.
Elizabeth Arden, Inc. Announces Second Quarter Results
Thursday February 3, 7:20 am ET
~ Net Sales Increase of 9.0% ~
~ EPS of $1.06; Exceeds Prior Guidance ~
~ Raising Full Year EPS Guidance ~
NEW YORK, Feb. 3 /PRNewswire-FirstCall/ -- Elizabeth Arden, Inc. (Nasdaq: RDEN - News), a global prestige fragrance and beauty products company, today announced financial results for the three and six-month periods ended December 31, 2004.
SECOND QUARTER RESULTS
In line with previously announced expectations, net sales advanced 9.0% to $323.0 million for the three months ended December 31, 2004 from $296.3 million in the second quarter of the prior fiscal year. The sales growth was led by the success of the Britney Spears' Curious fragrance, which was the number one fragrance for the holiday season in U.S. department stores as well as in the select international markets in which it was launched. The performance of the Elizabeth Arden Provocative Woman fragrance and strong results in various international markets also contributed to the increase. Excluding the impact of foreign currency translation, net sales increased 6.8%.
Gross margin continued to increase and expanded 230 basis points to 43.8% from 41.5% in the comparable period last year. This improvement reflects a higher proportion of net sales of owned and licensed brands as well as operational savings, including the benefits of the Company's warehouse consolidation.
Net income advanced 49.6% to $31.7 million from $21.2 million. Earnings per share were $1.06, as compared to $0.09 in the prior year, exceeding previous guidance of $1.00 to $1.04 per share. Excluding debt extinguishment and restructuring charges as well as the accelerated accretion on the converted preferred stock, earnings for the prior year period were $1.05 per share. The better than expected earnings were also achieved despite a nearly 50% increase in advertising and promotional expenditures.
E. Scott Beattie, Chairman and Chief Executive Officer of Elizabeth Arden, Inc., commented, "Our business performed extremely well during the holiday season driven by the strength of our brands. By any measure, the Britney Spears' Curious fragrance was a stellar success in U.S. department stores, becoming the largest woman's fragrance launch ever at several retailers, as well as in all of the international markets in which it was launched. This performance gives us the confidence that we will experience similar success as we continue to roll-out Curious internationally. We intend to continue to aggressively support this brand to take advantage of the momentum. In addition, the Elizabeth Arden brand exhibited continued strength, led by the Elizabeth Arden Provocative Woman fragrance and our skin care franchises. Our department store results in December exceeded the category in the U.S. and were category leaders in many of our international markets. Benefiting from a nearly two-fold increase in advertising spend, White Diamonds was the number one selling gift set in U.S. department stores for the sixth straight year and was the number one woman's fragrance brand in the mass channel, contributing to the overall growth of the prestige fragrance category at mass retailers this year. Lastly, the ability to not only grow our top line and increase market share but also continue to expand our gross margin allowed the Company to deliver bottom line results ahead of previously announced expectations."
SIX-MONTH RESULTS
Net sales increased 8.0% to $535.1 million from $495.2 million for the six months ended December 27, 2003. Net income advanced to $36.5 million versus $22.5 million for the year-ago period and earnings per share were $1.23 as compared to $0.11. Excluding debt extinguishment and restructuring charges as well as the accelerated accretion on the converted preferred stock, earnings for the prior year period were $1.15 per share.
OUTLOOK
The Company currently anticipates net sales for the third quarter ending March 31, 2005 to increase 8% to 10% over $182.2 million for the prior year period and earnings per diluted share to be in the range of $0.17 to $0.19. The guidance for the third quarter reflects the launch of Britney Spears' Curious into additional international and travel retail markets and increased investment to maintain the success of the brand. In terms of its annual guidance, the Company expects net sales of $900 million to $910 million and is raising its expectation for earnings per diluted share to $1.26 to $1.30, representing an increase of 25% to 29% over the prior fiscal year.
:D
Press Release Source: Elizabeth Arden, Inc.
Elizabeth Arden, Inc. Announces Second Quarter Results
Thursday February 3, 7:20 am ET
~ Net Sales Increase of 9.0% ~
~ EPS of $1.06; Exceeds Prior Guidance ~
~ Raising Full Year EPS Guidance ~
NEW YORK, Feb. 3 /PRNewswire-FirstCall/ -- Elizabeth Arden, Inc. (Nasdaq: RDEN - News), a global prestige fragrance and beauty products company, today announced financial results for the three and six-month periods ended December 31, 2004.
SECOND QUARTER RESULTS
In line with previously announced expectations, net sales advanced 9.0% to $323.0 million for the three months ended December 31, 2004 from $296.3 million in the second quarter of the prior fiscal year. The sales growth was led by the success of the Britney Spears' Curious fragrance, which was the number one fragrance for the holiday season in U.S. department stores as well as in the select international markets in which it was launched. The performance of the Elizabeth Arden Provocative Woman fragrance and strong results in various international markets also contributed to the increase. Excluding the impact of foreign currency translation, net sales increased 6.8%.
Gross margin continued to increase and expanded 230 basis points to 43.8% from 41.5% in the comparable period last year. This improvement reflects a higher proportion of net sales of owned and licensed brands as well as operational savings, including the benefits of the Company's warehouse consolidation.
Net income advanced 49.6% to $31.7 million from $21.2 million. Earnings per share were $1.06, as compared to $0.09 in the prior year, exceeding previous guidance of $1.00 to $1.04 per share. Excluding debt extinguishment and restructuring charges as well as the accelerated accretion on the converted preferred stock, earnings for the prior year period were $1.05 per share. The better than expected earnings were also achieved despite a nearly 50% increase in advertising and promotional expenditures.
E. Scott Beattie, Chairman and Chief Executive Officer of Elizabeth Arden, Inc., commented, "Our business performed extremely well during the holiday season driven by the strength of our brands. By any measure, the Britney Spears' Curious fragrance was a stellar success in U.S. department stores, becoming the largest woman's fragrance launch ever at several retailers, as well as in all of the international markets in which it was launched. This performance gives us the confidence that we will experience similar success as we continue to roll-out Curious internationally. We intend to continue to aggressively support this brand to take advantage of the momentum. In addition, the Elizabeth Arden brand exhibited continued strength, led by the Elizabeth Arden Provocative Woman fragrance and our skin care franchises. Our department store results in December exceeded the category in the U.S. and were category leaders in many of our international markets. Benefiting from a nearly two-fold increase in advertising spend, White Diamonds was the number one selling gift set in U.S. department stores for the sixth straight year and was the number one woman's fragrance brand in the mass channel, contributing to the overall growth of the prestige fragrance category at mass retailers this year. Lastly, the ability to not only grow our top line and increase market share but also continue to expand our gross margin allowed the Company to deliver bottom line results ahead of previously announced expectations."
SIX-MONTH RESULTS
Net sales increased 8.0% to $535.1 million from $495.2 million for the six months ended December 27, 2003. Net income advanced to $36.5 million versus $22.5 million for the year-ago period and earnings per share were $1.23 as compared to $0.11. Excluding debt extinguishment and restructuring charges as well as the accelerated accretion on the converted preferred stock, earnings for the prior year period were $1.15 per share.
OUTLOOK
The Company currently anticipates net sales for the third quarter ending March 31, 2005 to increase 8% to 10% over $182.2 million for the prior year period and earnings per diluted share to be in the range of $0.17 to $0.19. The guidance for the third quarter reflects the launch of Britney Spears' Curious into additional international and travel retail markets and increased investment to maintain the success of the brand. In terms of its annual guidance, the Company expects net sales of $900 million to $910 million and is raising its expectation for earnings per diluted share to $1.26 to $1.30, representing an increase of 25% to 29% over the prior fiscal year.
:D