Oct 31, 2013
Elizabeth Arden forecasts current quarter below estimates
Oct 31, 2013
Beauty products company Elizabeth Arden forecast current-quarter results below analysts' estimates as it continues to face sales decline in North America.
The company, which sells celebrity fragrances and cosmetics under its namesake brand, said it expects a second-quarter profit of $1.30-$1.60 per share, on revenue of $450 million-$475 million.
Analysts on average were expecting a profit of $1.66 per share, on revenue of $481.8 million, according to Thomson Reuters.
Elizabeth Arden said its results will be based on retail performance in the holiday season and orders from North America mass accounts, both of which have been volatile over the past year.
North America sales declined 3 percent in the first quarter ended September 30. The region accounted for about 65 percent of total sales of $343.6 million in the quarter.
Elizabeth Arden sells its products to mass market chains such as Wal-Mart Stores, Target Corp and Kohl's, as well as department stores including Nordstrom and Macy's.
Wal-Mart, Elizabeth Arden's largest U.S. mass retailer, ordered less than planned in the fourth quarter, forcing the company to post weaker results and forecasts in August.
Elizabeth Arden's first-quarter net income fell to $1.7 million, or 6 cents per share, from $2.2 million, or 7 cents per share, a year earlier.
Excluding items, the company earned 22 cents per share, beating analysts' estimates of 15 cents per share.
Elizabeth Arden shares closed at $37.73 on the Nasdaq. The stock has fallen 16 percent since January to Wednesday's close.
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