Elizabeth Arden raises expectations after strong international sales

By Katie Bird

- Last updated on GMT

Related tags Revenue

Cosmetics and fragrance company Elizabeth Arden has raised its expectations for 2011 off the back of strong international sales in its second quarter.

The company reported net sales of $405.6m for the quarter ending December 31, an increase of 3.1 percent on last year’s figures.

Flat North American sales

However, sales from its North American business, which makes up just over two thirds of the company’s turnover, remained flat.

According to CEO E. Scott Beattie, this was mainly due to a weak performance in the department store fragrance business.

“We saw strong net sales increases in our mass retail and direct-to-consumer businesses that offset declines in our US department store fragrance business, which were largely anticipated,”​ he said.

In contrast, international sales were up by 12 percent, in constant currencies, which reflects the company’s strategy to expand outside of the US, according to Beattie.

“…sales of Elizbeth Arden branded products rose by 7 percent globally, while sales of our European fragrance business grew by 13 percent, consistent with our strategy to accelerate the growth of the Elizabeth Arden brand and increase our share of the European fragrance market.”

Net income for the quarter came in at $33.96m in comparison to the $21.06m recorded in the same period in 2009.

Commenting on how these results topped expectations Beattie said: “The momentum we saw in our business through the first quarter continues. Sales and earnings results were ahead of our prior guidance”.

Raised expectations

On the back of these results, the company has raised its expectations for the year ahead; saying it expects to achieve sales growth of between 4 and 5 percent, up from 3 – 4 percent predicted at the end of 2010.

Net earnings per diluted share are expected to increase from the $1.15 - $1.25 predicted last year, to $1.40 - $1.50, according to the company.

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