News Flash

Elizabeth Arden European opts deliver 15% sales growth

02 Nov '07

3 min read

We also delivered 15% sales growth and significant improvement in profitability in our European operations. These results were in part due to the strong performance of the Elizabeth Arden brand in international markets. With nearly 65% of the total sales of Elizabeth Arden-branded products sold internationally, we expect the positive momentum behind the brand to continue due to strong global economic growth."

"In North America, our U.S. mass business was up 14%, on top of strong comparable growth last year, and our U.S. Department Stores business declined by 25%, driven by the timing of launches and changes in the retail calendar.

Much of this decrease is expected to be made up in the second quarter with the launch of PREVAGE Night Cream and the performance of the M by Mariah Carey and Britney Spears believe fragrances. It is important to note that the results in the first quarter for our U.S. Department Stores business were essentially on plan."

Outlook:
For the first half of fiscal 2008, the Company is confirming its diluted earnings per share guidance of $1.15 to $1.20 and now expects net sales to increase by 5% to 7%. The Company confirms its fiscal 2008 annual net sales and diluted earnings per share guidance.

For fiscal 2008, the Company expects net sales to increase by 5% to 7% and diluted earnings per share to be in the range of $1.65 to $1.75. The earnings guidance is based on a full fiscal year anticipated effective tax rate of approximately 25%.

The Company notes that it utilizes foreign currency hedges which are reflected in its results and guidance. The Company's guidance is based on a number of factors, including the anticipated success of its new product launches, the introduction of additional fragrance brands to its mass retail customers as planned and expected improvement in operating performance, and excludes any restructuring charges.

Conference Call Information:
The Company will host a conference call on November 2nd at 9:30 a.m. Eastern Time. All interested parties can listen to a live web cast of the Company's conference call by logging on to the Company's web site.

Elizabeth Arden Inc

More Elizabeth Arden Inc News... More Fashion News - United States Of America...