NEW YORK — Thanks to several recent fragrance launches and strong December sales with the Prevage skin care line, Elizabeth Arden Inc. reported a 4.1 percent increase in net income on a 7.1 percent gain in net sales for the second quarter of fiscal 2006.
Net income in the three months ended Dec. 31 rose to $33.1 million, or $1.12 per diluted share, up from $31.7 million, or $1.06 per share, in the prior year, on net sales that climbed to $345.9 million from $323 million.
“Fantasy ended up as the third-largest new fragrance launch of the fall season, which was in line with both our and our customers’ expectations,” said Paul West, president and chief operating officer of Elizabeth Arden, on a conference call with analysts. “We also launched Prevage, which catapulted to the number-one item in December where it competes.”
Britney Spears’ Curious fragrance led the company’s matched market business and generated $30 million in retail revenue.
In the coming year, Elizabeth Arden plans to roll out another Spears fragrance, Curious in Control; launch Fantasy and Prevage internationally, and launch its Daytona 500 fragrance in the U.S. The company set its net sales guidance for the third quarter to be in the range of $195 million to $200 million, with net earnings between 1 and 3 cents per diluted share.
This story first appeared in the February 3, 2006 issue of WWD. Subscribe Today.