Net sales rise 8.7% to $1.3 billion.
Elizabeth Arden reported an 8.7% rise in net sales to $1.3 billion for the fiscal year ended June 30, 2013. In North America, net sales increased 10.2% over the prior fiscal year, while net sales for the company's international segment increased by 8.4%. Net sales of fragrances in the international segment increased 14% 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, net sales stayed almost flat, inching 0.8% to $267.6 million.
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 continued, "We remain confident in our repositioning efforts and, in fact, are accelerating the execution of the Elizabeth Arden brand repositioning. We expect to incur the final phase of repositioning expenses, including eliminating pre-repositioned product inventory and exiting unprofitable doors, in fiscal 2014. While resulting in near term charges, this is expected to drive improved performance of the Elizabeth Arden brand going forward. Separately, we are taking steps to improve efficiencies in our sales organizations and in the overall indirect overhead structure."
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.
Next, 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."
For the fiscal year ending June 30, 2014, Elizabeth Arden expects net sales to increase by 3-5%.