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
Henri Bendel Moves ‘Forward’ With Skin Care
NEW YORK — Henri Bendel is applying what it learned from color cosmetics to skin care with its new Face Forward department.
“We looked at our business overall and [found] there is such a high penetration in color cosmetics,” said Laura Saio, merchandising manager of cosmetics for Henri Bendel. “There is a penetration for skin care, but the challenge is to [increase that], focus on utilizing what we do best in color and translate that into the skin care and treatment business.“We are focusing on this as a launch pad for new skin care lines — we will put them together in one critical mass to make a statement in the store,” Saio added.
The featured brands include Boscia, N.V. Perricone, Epicuren, Freeze 24/7, Mario Badescu, Ole Henriksen, StriVectin-SD, Therapy Systems and Z. Bigatti. In September, Rodan & Fields is slated to make its debut and will occupy the space currently occupied by Giella, a custom-blend color cosmetics brand.
The department will occupy about 36 linear feet along one wall, with each brand having its own case and identity. Currently, the skin care category accounts for less than 20 percent of the retailer’s total beauty business; Saio noted the goal is to increase it to 25 percent by yearend and to reach 35 percent within 12 months.
“Our customer base is fairly young and pretty, and she’s started to think about skin care,” said Teril Turner, director of marketing. “Whether she’s trying to refresh her skin after too many weekends in the Hamptons or starting to worry about fine lines, there’s a huge opportunity to reach out and show her we have a unique take on this category. It’s not your mom’s skin care.”
Turner added that there will be an “aggressive events schedule to back it all up.”
Bendel’s has already set up its promotional calendar with the brands, including support, exclusivity, personal appearances, clinics and workshops.
“We know we need to have excitement and momentum in this area the same way we have it in color,” said Turner. “That’s what works for us, and that’s what our customer enjoys.” — Kristin Finn
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye