US. Elizabeth Arden narrowed its losses in the three months ended 30 June, thanks partly to an improved travel retail performance and the favorable impact of foreign currency rates.
The Miami-based company also said that fragrance sales to US mass-retail customers had increased.Net sales for the period were also driven by the launch of the Elizabeth Arden Provocative Woman fragrance in April in the US.
Net sales increased +17.2% to US$154.6 million for the three months ended 30 June 2004 from US$131.9 million in the comparable period of the prior year. Gross margin expanded to 41.7% for the three-month period from 39.1% in the prior year period.
Net loss per share improved by US$0.55 to a loss of US$0.35 per share for the three months ended June 30, 2004 as compared to a loss of US$0.90 per share for the comparable prior year period.
For the full twelve-month period ended 30 June 2004, net sales increased +11.5% to US$832.0 million from US$746.1 million in the prior year period and earnings per share were US$1.01 compared to US$0.34 in the comparable period of the prior year.
The company has traditionally placed a big focus on travel retail which historically has accounted for over 10% of sales.
E. Scott Beattie, Chairman and Chief Executive Officer commented, “Overall, we are pleased with our results. Performance has been solid across all of our selling units, and retail sales globally continue to support our revenue and earnings targets for this fiscal year. We are on track to deliver our expected full year savings.
“Our innovation activities have been exciting. In June, we introduced to the beauty industry Curious by Britney Spears, the new fragrance under the Britney Spears license, which received an extremely enthusiastic reception by our retail partners. Curious is rolling out to US department stores beginning in September and in international markets in the spring of 2005.
“We also were pleased with the successful introduction of Elizabeth Arden Provocative Woman, which, with the support of a new television campaign featuring Catherine Zeta-Jones, was launched in the US this spring and is scheduled to ship to our international markets this fall.”
MORE STORIES ON ELIZABETH ARDEN
Elizabeth Arden unleashes nocturnal networking – 13/08/04
Elizabeth Arden expands beauty portfolio – 09/06/04
Elizabeth Arden gets Provocative with new feminine fragrance