Elizabeth Arden alleviates financial fears
easing concerns that its results would be weaker than predicted.
The company reiterated its prediction of a 15 to 18 percent rise in sales for 2007, which would take total yearly sales from $954.6m to between $1.1bn and $1.3bn. Expectations for net income per share also remained unchanged at between $1.15 and $1.20 per share. The market reacted positively to the announcement. As US stock markets took a tumble last week, shares in Elizabeth Arden rose six percent on Thursday and nine percent on Friday, closing up at $20.86. The figures allayed fears about the firm's quarterly results that had been provoked by the lack of communication from Elizabeth Arden, according to an analyst who spoke to Associated Press. "People might be concerned that there is a problem or issue", added Arnold Ursaner, from CJS Securities. "The fact that they reaffirmed guidance eliminated that." The company is scheduled to report its results for the year ending June 30 on August 16. The market's nervousness may have also been related to Elizabeth Arden's failure to hit its earnings and revenue projections, when it released its 2006 results last August. Shares in the cosmetics firm fell to $13.63 on August 26, 2006, $7.23 below the current level. The results were affected by restructuring costs, weakness in the retail industry and expenses related to the acquisitions of Sovereign Sales and Riviera Concepts. Since then the company has recovered well, posting net income figures for the third quarter in May this year of $3.2m, which compared favorably with $0.7m last year. It had been feared that the 2007 results would be affected by the negative press coverage of Britney Spears, the face of Elizabeth Arden's flagship fragrances. Recently released print adverts, showing the star looking slim and sexy, have led gossip magazines to accuse Elizabeth Arden of using a double. A company representative has denied the rumor.
