Elizabeth Arden Inc. sees a transformational year ahead as the company drives its stake further into the celebrity fragrance business — trying to beat Coty Inc. at its own game — and works to round out its business in prestige skin care and color with a major relaunch of its flagship Elizabeth Arden brand this fall.
The company’s top-to-bottom overhaul of Elizabeth Arden is expected to double the brand’s sales over the next five years, said E. Scott Beattie, chairman, president and chief executive officer. That goal, in turn, would also nearly double the company’s current revenue, which for 2012 was $1.24 billion, as Beattie has previously noted. RELATED STORY: Symrise Net Profit Grows 13.1% inQ2 >>
“We expect fiscal 2013 to be a transformational year in the expansion of our business,” Beattie told Wall Street analysts during the company’s earnings call on Thursday. “Our organization has never been better prepared for accelerated revenue growth.” He said he anticipates fiscal 2013 will “be the beginning of a number of years of above-industry growth rates.”
For the fourth quarter, the company’s net income declined 32.8 percent to $3.63 million, or 12 cents a diluted share, compared with $5.40 million, or 18 cents a share, due to transition expenses and costs tied to fragrance license acquisitions completed during the quarter. Excluding those expenses, on an adjusted basis, net income a diluted share was 28 cents. The company’s net sales for the three-month-period ended June 30, gained 4.6 percent to $265.5 million, compared with $253.8 in the prior-year period. Excluding the unfavorable impact of in the prior-year period. Excluding the unfavorable impact of foreign currency translation, net sales increased by 8 percent.
Arden’s new product pipeline for fall is teeming with fragrances, due in large part to the acquisitions mentioned above. In June, Arden purchased the fragrance licenses of Justin Bieber and Nicki Minaj from Give Back Brands. The deal followed Arden’s acquisition of the global fragrance licenses of Ed Hardy, True Religion and BCBG Max Azria from New Wave Fragrances.
Bieber and Minaj — when coupled with celebrities in Arden’s existing portfolio, which include Taylor Swift and Mariah Carey among others — make Arden the leading celebrity fragrance company in the world, according to the company.
Swift and Bieber are a veritable power couple for Arden. Their inaugural scents, Wonderstruck and Somebody, respectively, accounted for more than a quarter of the total growth of the women’s prestige fragrance category in the U.S. last fall, said Kathy Widmer, executive vice president and chief marketing officer.
Both singers now have second scents in the works. Bieber’s Girlfriend fragrance launched in department stores in June, and Swift’s Wonderstruck Enchanted will follow in September. Fall launches also are planned for Nicki Minaj, Ed Hardy, True Religion and BCBG Max Azria.
Arden reaped the rewards from new product introductions in 2012, with its prestige business growing 10 percent.
However, on the mass side, its business was soft, with sales inching up 1 percent for the year. But this fall, Arden expects mass to get a big boost from fragrances cascading to the mass market from prestige, like Bieber’s Someday.
For the full year, Arden’s net income gained 40.1 percent to $57.4 million, or $1.91 a diluted share, compared with about $41 million, or $1.41 a share. Net sales rose 5.3 percent to $1.24 billion, compared with $1.18 billion in the prior year.
The company also continued to expand its international reach. In fiscal 2012, its international business gained 9.8 percent, or 9.4 percent in constant currency, over the prior year. Net sales in North America gained 2.9 percent, hampered in part by weakness in the mass market.
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion