Elizabeth Arden continues to grow sales at double digit figures
The company said that sales grew at 10.5 percent to $264.5m, compared to the third quarter last year. The figure was impacted by negative foreign currency translations, which otherwise would have seen sales grow by 11.2 percent.
The company also posted a loss of $1.27m, compared to a profit of $2.19m in the corresponding period last year. The loss was put down to higher expenses and one time charges associated with its re-branding strategy.
However, analysts responded positively to the results, as revenues went beyond forecasts and the losses had been largely expected on account of the restructuring.
Extending flagship model
“Our focus is on extending key elements of the flagship model to drive the Elizabeth Arden brand on a global basis," said CEO E. Scott Beattie, discussing the results in the context of the restructuring charges.
In particular, Beattie pointed to the fact that fragrance sales had been very strong in all of the company’s key markets, whereas the fact that the company is continuing to expand in South America looks bodes well for future business.
“During the quarter, we opened our affiliate in Brazil and began commercial sales in that market in February,” Beattie said.
International sales led by Western Europe
In the company’s mainstay North American market, sales grew by 9.4 percent to $158.74m, with momentum being driven by new fragrance launches, including Pink Friday Nicki Minaj and Justin Bieber’s Girlfriend, as well as the continued momentum of the Juicy Couture fragrance line.
Internationally, net sales grew by 14 percent at constant rates to $105.7m, driven by the continued focus on product launches and branding in the Western European market, where sales grew at 33 percent.
Looking ahead, the company said it expects full year net sales for fiscal 2013 to grow at the 9 – 11 percent range, assuming an unfavorable impact on foreign currency translations of 0.6 percent.
