Elizabeth Arden Reports Third Quarter Results

Elizabeth Arden, Inc., maker of skin care, cosmetic and fragrance brands such as Red Door and Elizabeth Taylor’s White Diamonds, today reported third-quarter net earnings rose 160% to $302.9 million for the third quarter ended Oct. 27. Last year’s third quarter net sales reached $163.4. However, the company noted prestige department store sales were still feeling the effects of the Sept. 11 attacks. Net income for the third quarter was $32.6 million, up from $12.5 million a year ago. The company acquired the Elizabeth Arden business on Jan. 23, which will be included in fiscal year results.

The company’s mass and mid-tier distribution channels experienced relatively strong sales versus a year ago. Executives cited this as a result of promotional gift sets, more customers and higher sales to customers using the company’s “open sell” strategy. Sales in the U.S. prestige department store channel continued to be weak, reflecting reduced customer traffic and a difficult economy following the events of Sept. 11. Elizabeth Arden Inc.’s international travel retail business experienced a significant decline after Sept. 11, however, the company’s other international operations performed as expected, executives said.

“We are very pleased with our earnings for the third quarter, seasonally our strongest quarter, as we achieved these results despite what has been a very challenging retail environment,” said E. Scott Beattie, chairman, president and chief executive officer of Elizabeth Arden, Inc. “The successful integration of the Elizabeth Arden business continues to proceed as planned and across-the-board cost management initiatives enabled us to achieve EBITDA relatively close to our expectations prior to Sept. 11. Our fourth quarter performance will depend, in large part, upon the performance of our retail partners and their approach with respect to inventories.”