NEW YORK — Higher sales and lower debt helped Elizabeth Arden Inc. narrow losses in its fiscal fourth quarter.
For the period ended June 30, the New York-based beauty and fragrance manufacturer reported a loss of $9.1 million, or $1.12 a diluted share, compared with a loss of $15.1 million, or 90 cents, in the year-ago period.
Earnings were significantly impacted by management’s efforts to reduce debt and bring the company back to profitability. Excluding charges related to debt retirement, stock conversions and the consolidation of the company's domestic distribution facilities losses were $8.6 million, or 35 cents a share.
“The reduction in debt and the corresponding increase in equity value of the company was almost a $100 million reduction in debt, and $100 million improvement in the book value of the company,” said Scott Beattie, chairman and chief executive officer, during the company conference call.
Sales for the period rose 17.2 percent to $154.6 million, against sales of $131.9 million in the year-ago quarter. Fragrance sales to the company’s mass retail customers, as well as the April launch of the Provocative Woman fragrance, spurred sales.
“Provocative Woman was launched in the United States in the spring season, and it is meeting or exceeding our expectations as it continues to rank in the top 20 brands,” said Paul West, chief operating officer, during the conference call.
Looking ahead, management has high expectations for its launch of the Curious by Britney Spears fragrance, slated to ship on Sept. 7. — Ross Tucker
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