Arden posts 4Q and fiscal 2013 results

Elizabeth Arden reported net sales of $1.345 billion for the fiscal year ended June 30, 2013, or an increase of 8.6% as compared to the prior fiscal year. 

In North America, net sales increased 10.2% over the prior fiscal year, and net sales for the Company's international segment increased by 8.4% (at constant rates). Net sales of fragrances in the international segment increased 14% (at constant rates) for fiscal 2013 behind the Company's Western European fragrance initiative and expansion into new markets.

Retail sales at the Elizabeth Arden flagship counters have increased 20% in North America year over year since conversion. 

For the fourth quarter ended June 30, 2013, the Company reported net sales of $267.6 million, or an increase of 0.8%, as compared to the prior year period. At constant rates, net sales increased by 1.2%. On a reported basis, net loss per diluted share was $0.17. On an adjusted basis, net income per diluted share was $0.10, as compared to net income per diluted share of $0.28 for the prior year period. Adjusted net income per diluted share excludes non-recurring costs as noted above 

Looking ahead to the outlook for 2014 and the fiscal year ending June 30, 2014, Arden expects net sales to increase by 3.0% to 5.0%. This includes an expected unfavorable impact from foreign currency of approximately 1.0%, as compared to the prior year period. Earnings per diluted share is expected to be in the range of $2.15 to $2.30. 

E. Scott Beattie, chairman, president and CEO, Elizabeth Arden, Inc., commented: "There were two primary factors that caused our sales and earnings results to be below our expectations in fiscal 2013. The first was due to weakness at one of our largest North American mass retail customers, both in terms of retail sales performance and replenishment rate. The second factor was that are growth projections for the Elizabeth Arden brand proved to be overly optimistic given the complexity and scope of transition underway for the brand repositioning."

Beattie also noted that it was a transitional year for the company, and said that progress had been made in driving its Western European fragrance initiative and significantly enhancing the future prospects of the Elizabeth Arden brand through the brand repositioning. 

As for the future, Beattie concluded: "Our priorities remain to accelerate the global growth of the Elizabeth Arden brand, expand sales of our fragrance portfolio, particularly internationally, and continue to drive operational efficiencies. Many of the initiatives we are undertaking to expand our business, while not accretive in fiscal 2014, are important to drive future growth. I am confident that with the acquisitions and restructuring activities, including those associated with the Elizabeth Arden brand repositioning, behind us and more conservative forward guidance, we will return to systematic improvement in gross margins, EBITDA margins and return on invested capital." 
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