The current state of economic affairs is showing its impact on the global prestige market, according to a recent report from NPD. Furthermore, financial standings for industry leaders such Elizabeth Arden are showing signs of slowing down, as seen in company financial reports. For the second fiscal quarter ended Dec. 31, 2008, Elizabeth Arden reported net sales of $370 million, a decrease of 12.4%. For the six months ended Dec. 31, the company reported a 6% slip in net sales to $654.2 million.
E. Scott Beattie, chairman, president and chief executive officer of Elizabeth Arden, commented, “Our results were at the high end of the revised guidance announced in January, and we are maintaining our outlook for the second half of our fiscal year and our original full fiscal year cash flow targets.
“While continuing to operate in a difficult economic environment, we are encouraged by the performance of our North American mass retail fragrance business, our new launches and the recently licensed Liz Claiborne fragrance brands,” he continued.
The company is maintaining its outlook and currently expects net sales to decrease by 1-3% for the second half of its fiscal year ending June 30, 2009, or to increase by 1.5-3.5% excluding an expected unfavorable impact of foreign currency, as compared to the second half of the prior fiscal year.
This guidance assumes the anticipated contribution from the continued rollout of the Liz Claiborne fragrances and the second half global launch of the new Elizabeth Arden fragrance, Pretty, and the comparatively weak third and fourth fiscal quarter performance in the prior year.
For the full fiscal year ending June 30, 2009, Elizabeth Arden’s guidance is for net sales to decline by 4% to 5%, or 1% to 2% excluding an expected unfavorable impact from foreign currency, as compared to the prior year period.