Sales: $1.1 billion, for the year ended June 30, 2014.
Key Personnel: E. Scott Beattie, chairman, president and chief executive officer; Joel B. Ronkin, executive vice president and general manager, North America; Eric Lauzat, executive vice president and general manager, international; Rod Little, executive vice president and chief financial officer; Pierre Pirard, executive vice president, product innovation and global supply chain; Oscar E. Marina, executive vice president, general counsel and secretary.
Major Products: Skin care, color cosmetics and fragrances sold under the Elizabeth Arden name, as well as celebrity, lifestyle and designer fragrances.
New Products: Skin care—Prevage Anti-Aging Wrinkle Smoother, Flawless Future Powered by Ceramide Night Cream; Color—Flawless Finish Perfectly Satin 24hr Makeup, Sun-Kissed Pearls color collection; Beautiful Color moisturizing lipstick; Fragrance—Green Tea Bamboo EDT.
Comments: Celebrity is fleeting and fading—especially in the rough and tumble world of cosmetics. With a stable of fragrances from the likes of Justin Bieber and Taylor Swift, Elizabeth Arden’s sales fell again last year, dropping 13% as losses mounted.
As the situation grew from bad to worse, the company hired Goldman Sachs to explore a sale. When nothing turned up, private equity firm Rhône Capital took a 7.6% stake in Elizabeth Arden, with planned to raise its stake over time. To remedy the situation, more than a year ago, the company announced that it would exit low-return businesses and brands, unprofitable retail locations and fragrance licenses, and discontinue certain products. It also unveiled plans to reduce the size and cost of its overhead structure, and slash an unidentified number of jobs and shut its Puerto Rico affiliate. The cost-cutting measures, which Elizabeth Arden said it hopes will bolster long-term gross margins and profitability, are part of its broader turnaround plan that calls for $40 million and $50 million in annual savings.
So far, it’s not working. For the nine months ended March 31, 2015, sales fell 18% to about $795 million. The company reported a net loss of $117 million, compared to a net profit of $9 million the previous year.
In May, Elizabeth Arden signed supermodel Karlina Caune as a spokesmodel. As the new global face of the Elizabeth Arden brand, Caune will serve as brand ambassador, and appear in the brand’s advertising campaigns and marketing programs and at public relations events.