Elizabeth Arden Narrows Losses in 2Q

Elizabeth Arden Inc. said its fiscal second-quarter net loss narrowed, thanks to higher sales and improved gross profit. The provider of fragrance and beauty products Wednesday reported a net loss of $11 million, or 62 cents a share, for the period that ended July 27, compared with a loss of $26.8 million, or $1.53 a share, a year earlier.

Sales rose 11% to $127.2 million from $114.9 million. The company attributed the increase to a marketing program for mass and mid-tier retailers, new product launches and the addition of some popular distribution brands. The increase was partly offset by soft Mother’s Day and Father’s Day sales and reduced sales in prestige department stores.

Gross profit, or net sales minus the cost of sales, increased 41% to $48.5 million from $34.5 million. The company said the increase was the result of an inventory charge recorded in the year-earlier period and the sell-through of the high-cost Elizabeth Arden inventory. Overhead expenses fell to $47.8 million, or 38% of net sales, compared with $ 54.6 million, or 48% of net sales a year earlier.

E. Scott Beattie, chairman, president and chief executive, said the company remains optimistic about the balance of the year, although the economic environment is difficult and uncertain. During the summer, the company introduced a new Arden fragrance called ardenbeauty and launched a marketing campaign featuring film star Catherine Zeta-Jones. The company expects to ship its new Elizabeth Taylor fragrance, called Forever Elizabeth, to stores this month.