Elizabeth Arden’s second quarter net income declined 22%, but excluding restructuring charges, its per-share earnings of 92 cents trumped analysts’ consensus target by 10 cents per share. Net sales increased 18.8% to $410.8 million for the three months ended December 31, 2006 from $345.9 million in the comparable period of the prior year, while net income for the three months ended December 31, 2006 was $26.2 million. Net income for the six months ended December 31, 2006 were at $26.2 million.
Federated Department Stores’ acquisition of rival department store May Co. has hurt the company since Federated started closing duplicate May locations, cutting Elizabeth Arden’s sales base. Now the transition is nearly complete and there will be less impact on the company going forward, he predicted.
Elizabeth Arden acquired Riviera and Sovereign in 2006, which will boost earnings by the fourth quarter.