Dani Greene
Aug 11, 2016
Elizabeth Arden closes FY 2016 with increases in net sales and gross profit for fourth quarter
Dani Greene
Aug 11, 2016
For the fourth quarter of FY 2016, which ended June 30, 2016, beauty prestige company Elizabeth Arden posted a 9.8% increase in GAAP net sales at $192.7 million compared to fourth quarter FY 2016.
For the fourth quarter, net sales increased by 3.6% at constant foreign currency rates and a net loss of $0.79 per diluted share on an adjusted basis.
Elizabeth Arden reported a gross margin of 47.8% for the fourth quarter of FY 2016, as compared to 10.9% in the prior year same period. The company also reported that its adjusted gross margin increased by 6.2% to 48.9% over last year's fourth quarter at 42.7%.
North America segment net sales increased by 2.6%, and International segment net sales increased by 1.6% in the fourth quarter FY 2016 as compared to the prior year period.
The company reported an adjusted fourth quarter gross profit of $94,135,000 for FY 2016, whereas it realized an adjusted gross profit of $80,762,000 for the same quarter last year.
Elizabeth Arden saw growth by segment both in North America and internationally. On an adjusted basis and at constant foreign currency rates, North America segment net sales increased by 2.8%, and International segment net sales increased by 4.6%, as compared to the prior year period.
For the full fiscal year 2016, gross margin, earnings and cash flow all met or exceeded the company’s internal targets, even with foreign currency headwinds.
GAAP net sales were $966.7 million, a decrease of 0.4% from the prior fiscal year and adjusted net sales increased by 0.6% at constant foreign currency rates.
Fiscal year 2016 saw modest gains in adjusted gross profit at $436,188,000 compared to fiscal year 2015 at $430,093,000.
Although the fourth quarter of 2016 saw increased net sales in North American and internationally, for the full year, North America net sales decreased by 3.6% and international net sales decreased by 2.8% as compared to the prior fiscal year.
Elizabeth Arden, founded by Florence Nightingale Graham, opened its first salon in 1910 in New York City. The company offers luxury beauty products and has an extensive portfolio of brands sold in over 120 countries.
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