Elizabeth Arden, Inc. Announces Third Quarter Fiscal 2012 Results
Net Sales of $239 Million; Increase of 3.5% 3rd Quarter EPS of $0.07; Year-to-Date EPS of $1.79
(firmenpresse) - NEW YORK, NY -- (Marketwire) -- 05/03/12 -- Elizabeth Arden, Inc. (NASDAQ: RDEN), a global prestige beauty products company, today announced financial results for its third fiscal quarter ended March 31, 2012.
For the quarter ended March 31, 2012, the Company reported net sales of $239.3 million, an increase of 3.5%, as compared to the third quarter of the prior fiscal year. Excluding the unfavorable impact of foreign currency translation, net sales increased by 3.9%.
Net income per diluted share for the quarter ended March 31, 2012, was $0.07, as compared to a net loss per diluted share of $0.12 for the prior year period. For the prior year period, net income per diluted share was $0.02, excluding debt extinguishment charges associated with the Company's debt refinancing completed in the third quarter of the prior fiscal year. A reconciliation between GAAP and adjusted results can be found in the tables and footnotes at the end of this press release.
Net sales for the Company's international segment in the current quarter increased by 6.3%, or by 7.1% at constant rates, over the prior year period, and net sales in the Company's North America segment grew by 1.7%. Gross margin in the current quarter increased by 50 basis points to 50%.
Mr. Beattie commented, "Overall results were in line with our expectations. In anticipation of the roll-out of the newly packaged and reformulated products associated with the Elizabeth Arden brand repositioning, there has been a reduced pipeline of innovation of Elizabeth Arden products this quarter. We continue to make considerable progress toward this initiative, which we believe will be transformational for our Company. We are on schedule to accomplish the rapid conversion of approximately 50 flagship customer doors by the end of September 2012, with a broader group of our customer doors to follow."
For the nine months ended March 31, 2012, the Company reported net sales of $972.7 million, an increase of 5.5%, as compared to the prior year period. Excluding the favorable impact of foreign currency translation, net sales increased by 4.5%. Net income per diluted share was $1.79, as compared to net income per diluted share of $1.24 for the nine months ended March 31, 2011. For the prior year period, net income per diluted share was $1.39, excluding debt extinguishment charges and expenses associated with the Company's Global Efficiency Re-engineering initiative.
For fiscal 2012, the Company now expects net sales growth of 5.0% to 5.5% over the prior fiscal year and net income per diluted share of $1.95 to $2.00. The Company still expects its gross margin to increase by 200 to 250 basis points over fiscal 2011.
For the fourth fiscal quarter, net sales are expected to range between $261 million and $267 million, or increase by 2.9% to 5.2%, including a negative impact from unfavorable foreign currency rates of 1.7% based on current rates.
The Company will introduce fiscal 2013 guidance in August 2012 when it reports its fourth quarter and fiscal 2012 financial results.
The guidance is based on April 2012 month end foreign currency rates. The Company also notes that continued global economic uncertainty may have a negative effect on retailer and consumer confidence and demand, and, along with the foreign currency volatility, makes forecasting difficult.
The Company will host a conference call today at 10:00 a.m. Eastern Time. All interested parties can listen to a live web cast of the Company's conference call by visiting the Investor Relations section of the Corporate tab on the Company's web site at . An online archive of the broadcast will be available within one hour of the completion of the call and will be accessible on the Company's web site until June 3, 2012.
Elizabeth Arden is a global prestige beauty products company with an extensive portfolio of prestige beauty brands sold in over 100 countries. The company's brand portfolio includes Elizabeth Arden skincare, color and fragrance products, Prevage anti-aging formulas, the celebrity fragrance brands of Britney Spears, Elizabeth Taylor, Mariah Carey, Taylor Swift, and Usher; the designer fragrance brands of Juicy Couture, Alberta Ferretti, Alfred Sung, Geoffrey Beene, Halston, Bob Mackie, John Varvatos, Kate Spade, Lucky Brand, and Rocawear; and the lifestyle fragrance brands Curve, Giorgio Beverly Hills, and PS Fine Cologne.
The table below is a comparative summary of our net sales by reportable segment for the three and nine months ended March 31, 2012 and 2011.
In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Elizabeth Arden, Inc. is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "should," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding net sales, earnings, gross margins, operating cash flow and returns on invested capital. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations:
factors affecting our relationships with our customers or our customers' businesses, including the absence of contracts with customers, our customers' financial condition, and changes in the retail, fragrance and cosmetic industries, such as the consolidation of retailers and the associated closing of retail doors as well as retailer inventory control practices, including, but not limited to, levels of inventory carried at point of sale and practices used to control inventory shrinkage;
risks of international operations, including foreign currency fluctuations, hedging activities, economic and political consequences of terrorist attacks, disruptions in travel, unfavorable changes in U.S. or international laws or regulations, diseases and pandemics, and political instability in certain regions of the world;
our reliance on license agreements with third parties for the rights to sell many of our prestige fragrance brands;
our reliance on third-party manufacturers for substantially all of our owned and licensed products and our absence of contracts with suppliers of distributed brands and components for manufacturing of owned and licensed brands;
delays in shipments, inventory shortages and higher costs of production due to the loss of or disruption in our distribution facilities or at key third party manufacturing or fulfillment facilities that manufacture or provide logistic services for our products;
our ability to respond in a timely manner to changing consumer preferences and purchasing patterns and other international and domestic conditions and events that impact retailer and/or consumer confidence and demand, such as domestic or global recessions or economic uncertainty;
our ability to protect our intellectual property rights;
the success, or changes in the timing or scope, of our new product launches, advertising and merchandising programs;
the quality, safety and efficacy of our products;
the impact of competitive products and pricing;
our ability to (i) implement our growth strategy and acquire or license additional brands or secure additional distribution arrangements, (ii) successfully and cost-effectively integrate acquired businesses or new brands, and (iii) finance our growth strategy and our working capital requirements;
our level of indebtedness, our ability to realize sufficient cash flows from operations to meet our debt service obligations and working capital requirements, and restrictive covenants in our revolving credit facility and the indenture for our 7 3/8% senior notes;
changes in product mix to less profitable products;
the retention and availability of key personnel;
changes in the legal, regulatory and political environment that impact, or will impact, our business, including changes to customs or trade regulations, laws or regulations relating to ingredients or other chemicals or raw materials contained in products or packaging, or accounting standards or critical accounting estimates;
the success of our global Elizabeth Arden brand repositioning efforts;
the success of our Global Efficiency Re-engineering initiative, including our transition to a turnkey manufacturing process and our new financial accounting and order processing system;
our ability to effectively implement, manage and maintain our global information systems;
our reliance on third parties for certain outsourced business services, including information technology operations and employee benefit plan administration;
the potential for significant impairment charges relating to our trademarks, goodwill or other intangible assets that could result from a number of factors, including downward pressure on our stock price; and
other unanticipated risks and uncertainties.
We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended June 30, 2011.
Company Contact:
Marcey Becker
Senior Vice President, Finance
(212) 261-1068
Investor/Press Contact:
Allison Malkin/Michael Fox
Integrated Corporate Relations
(203) 682-8200
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Datum: 03.05.2012 - 11:00 Uhr
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News-ID 142220
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Kategorie:
Cosmetics and Accessories
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