Elizabeth Arden announces Q2 expectations exceeded
For the second fiscal quarter ended 31 December 2010, the company expects net sales will be at or above the high end of its previously issued guidance of $393m (€302.7m) to $403m (€310.4m).
It also stated expectations that earnings per diluted share will exceed prior guidance of $0.90 (€0.69) to $1.00 (€0.77) that was issued on 4 November 2010.
Following this announcement, Elizabeth Arden intends to release the full results for its second fiscal quarter and comment on its full fiscal year 2011 guidance on 3 February 2011.
Backed up by a strong Q1
Following a strong first fiscal quarter, the company said it was raising its annual net sales guidance for the fiscal year ending June 30, 2011 to a net sales increase of 3.5 percent to 4.5 percent, as compared to the prior fiscal year.
After a net sales increase in the first quarter, the beauty brand claimed the performance of its brands and progress of its global marketing initiatives had a positive impact
“Sales of Elizabeth Arden branded skin care products rose by 12 percent in the first quarter, and sales of our fragrance business grew by 8 percent overall and 17 percent in Europe,” said E. Scott Beattie, Elizabeth Arden CEO.
Revolving credit facility
As well as its earnings guidance announcement, the prestige beauty product firm, whose product portfolio reaches out to over 100 countries worldwide, revealed that it intends to enter into an amended and restated asset-based revolving credit facility.
This means the maturity date of the credit facility will be extended to January 2016 from its original date of December 2012.
In addition, based on the company's expected usage of its bank facility for working capital requirements, the bank facility size will be reduced from $325m (€250m) to $300m(€231m).
It will also be able to increase the size of the credit facility by $75m (€58m) at any time without entering into a formal amendment. Borrowings under the Company's existing credit facility as of 31 December 2010 were $37m (€29m).
