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Elizabeth Arden & Liz Claiborne enter distribution deal
29 May '08
3 min read
Through this partnership with Elizabeth Arden, we can continue to successfully develop and market brand enhancing fragrances in a more capital efficient manner, leveraging our strength in brand building with Arden's expertise in developing and growing fragrance businesses. This is another example of how diligently we are pursuing our strategy.
We expect this transaction to have a positive impact on our 2008 cash flows and to have no impact on 2008 projected adjusted EPS and operating margin. Looking forward to 2009 and beyond, we expect the impact of the royalty income from this transaction to be accretive to both EPS and operating margin."
Elizabeth Arden expects this transaction to contribute to both net sales and earnings growth in fiscal 2009. Elizabeth Arden expects to incur advertising and marketing expenses paid by Liz Claiborne and other transaction related expenses during the fourth quarter of fiscal 2008 and the first half of fiscal 2009.
Additionally, Elizabeth Arden expects its gross margins to be impacted in the fourth quarter of fiscal 2008 and through the first half of fiscal 2009 by the sale of Liz Claiborne inventory that Elizabeth Arden acquired prior to the effective date as a distributor.
After including the full impact of these costs, Elizabeth Arden expects this transaction to be accretive to earnings in the first half of fiscal 2009. Elizabeth Arden will provide further discussion and guidance for fiscal 2009 during its fourth quarter fiscal year 2008 conference call in August 2008.
The effectiveness of the licensing agreement is subject to satisfaction of certain conditions, including satisfaction of the requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Terms of the agreement were not disclosed.
Elizabeth Arden: Skincare. Color. PREVAGE. Fragrances (Red Door, 5th Avenue, Green Tea, Mediterranean, Provocative Woman). Fragrance Portfolio: Elizabeth Taylor. Mariah Carey. Britney Spears. Hilary Duff. Danielle Steele. Alberta Ferretti. Alfred Sung. Badgley Mischka. Bob Mackie. GANT. Geoffrey Beene. Halston. Nanette Lepore. Rocawear. Giorgio of Beverly Hills. Daytona 500. HUMMER. PS Fine Cologne.
We expect this transaction to have a positive impact on our 2008 cash flows and to have no impact on 2008 projected adjusted EPS and operating margin. Looking forward to 2009 and beyond, we expect the impact of the royalty income from this transaction to be accretive to both EPS and operating margin."
Elizabeth Arden expects this transaction to contribute to both net sales and earnings growth in fiscal 2009. Elizabeth Arden expects to incur advertising and marketing expenses paid by Liz Claiborne and other transaction related expenses during the fourth quarter of fiscal 2008 and the first half of fiscal 2009.
Additionally, Elizabeth Arden expects its gross margins to be impacted in the fourth quarter of fiscal 2008 and through the first half of fiscal 2009 by the sale of Liz Claiborne inventory that Elizabeth Arden acquired prior to the effective date as a distributor.
After including the full impact of these costs, Elizabeth Arden expects this transaction to be accretive to earnings in the first half of fiscal 2009. Elizabeth Arden will provide further discussion and guidance for fiscal 2009 during its fourth quarter fiscal year 2008 conference call in August 2008.
The effectiveness of the licensing agreement is subject to satisfaction of certain conditions, including satisfaction of the requirements of the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Terms of the agreement were not disclosed.
Elizabeth Arden: Skincare. Color. PREVAGE. Fragrances (Red Door, 5th Avenue, Green Tea, Mediterranean, Provocative Woman). Fragrance Portfolio: Elizabeth Taylor. Mariah Carey. Britney Spears. Hilary Duff. Danielle Steele. Alberta Ferretti. Alfred Sung. Badgley Mischka. Bob Mackie. GANT. Geoffrey Beene. Halston. Nanette Lepore. Rocawear. Giorgio of Beverly Hills. Daytona 500. HUMMER. PS Fine Cologne.
Liz Claiborne Inc
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