News Flash

Elizabeth Arden posts excellent performance in Asia Pacific

01 May '08

3 min read

The pace of our international business, particularly in the U.K., slowed this past quarter, after delivering 20% growth in the first half of this fiscal year, and was not able to offset these negative trends. That said, we are pleased to end the quarter with a strengthened balance sheet.

Inventory was on plan and well controlled, and we generated better than expected cash flow for the period. Cash flow from operations, after adjusting for the Sovereign Sales acquisition in fiscal 2007, has increased by $52 million through our third fiscal quarter, and we used this cash to reduce our credit line and repurchase shares under our share repurchase program."

Mr. Beattie continued, "For the balance of the year, we remain cautious with respect to our business in North America and the developed markets in Europe. We do expect this softness to be offset somewhat by a solid pipeline of new brands to North American retailers and continued excellent performance in the Asia Pacific region and in our travel retail and developing markets, which now represent over 50% of our international business."

The Company also announced that it has substantially completed the comprehensive review of its global business processes that it announced and commenced in fiscal 2007 to re-engineer its extended supply chain, logistics and transaction processing systems (Global Efficiency Engineering).

The inventory reduction initiatives and other programs that have been implemented as part of the Company's Global Efficiency Engineering have been well executed and have so far achieved their targets.

As a result, the Company has decided to accelerate the re-engineering of its extended supply chain functions as well as the realignment of other parts of the organization to best support its new business processes.

Click here to view more:

Elizabeth Arden Inc

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