Sales: $971 million for the year ended June 30, 2015.
Key Personnel: E. Scott Beattie, chairman, president and chief executive officer; JuE Wong, president, global Elizabeth Arden brand; Eric Lauzat, executive vice president and general manager, international; George Cleary, president, global fragrances; Rod Little, executive vice president, chief financial officer; Pierre Pirard, executive vice president, global supply chain and technical services; Oscar E. Marina, executive vice president, general counsel and secretary; Lita Cunningham, senior vice president, global human resources; Marcey Becker, senior vice president, finance, treasurer and corporate development.
Major Products: Skin care, color cosmetics and fragrances sold under the Elizabeth Arden name, as well as celebrity, lifestyle and designer fragrances.
New Products: Cosmetics—Superstart Skin Renewal Booster, Ceramide Youth Restoring Essence, Eight Hour Cream All-Over Miracle Oil, Prevage Anti-aging Foundation Broad Spectrum Sunscreen SPF 30, the Golden Opulence Fall Color Story. Fragrances—Elizabeth Arden Green Tea Elizabeth Arden 5th Avenue, Viva La Juicy Rosé, John Varvatos Dark Rebel, Pink Print Nicki Minaj, Maui fantasy Britney Spears and Wildfox. Christina Aguilera fragrances (acquisition).
Comments: All those timeless celebrities do have a shelf as it turns out, and time ran out on Elizabeth Arden. Last month, the company agreed to be acquired by Revlon for $870 million.
“We believe this is a compelling transaction that delivers certain value to our shareholders, while recognizing the unique equity in the Elizabeth Arden brand, our impressive fragrance portfolio and global footprint, as well as the positive momentum and growth potential for our business,” explained E. Scott Beattie, chairman, president and CEO, Elizabeth Arden. “We look forward to working with the Revlon leadership team to create a leading global beauty company, able to provide accelerated growth for the Elizabeth Arden-branded products as well as our prestige licensed fragrance portfolio, and broader opportunities for many of our employees.”
In the Age of YouTube and Instagram everyone wants to be famous—they just don’t want to smell like famous people anymore. The decline of celebrity scents hit Elizabeth Arden hard, very hard. The company’s sales fell again last year, this time 16.6%. In North America (57% of revenue) sales fell 17% in the region as nearly every fragrance brand, from Justin Bieber to Taylor Swift, reported a decline in sales.
International sales dropped 11%. The UK is EA’s largest international market with sales of $58 million last year, but the company said a distribution strategy change in China hurt results.
The declines continued into the new year. For the nine months ended March 31, 2016, sales fell 2.7% to $774 million.
Also in March, the company hired George Cleary as president, global fragrances. Cleary has more than 20 years of experience in beauty and personal care. His most recent role was as CEO, Iluminage, a fast growing global beauty device company. Prior to that, he held several senior positions at Coty Inc. including president, Americas, where he had full strategic and operational responsibility of the $1.2 billion business that spanned multiple beauty categories and channels.
Cleary wasted no time shaking things up.
In May, Elizabeth Arden said it will acquire the global license and certain related assets for the Christina Aguilera fragrance business from Procter & Gamble International. According to Arden, the singer’s scent the No. 1 celebrity fragrance brand in Europe.
The transaction is expected to close this quarter. A purchase price was not disclosed.