The company will begin to ship products born out of the brand’s repositioning — including a skin care regimen and line of eye shadows housed in new silver and gold packaging — to retailers in the company’s fourth quarter.
The overhauled brand “will be transformational for our company,” said E. Scott Beattie, chairman, president and chief executive officer of Elizabeth Arden Inc., during the company’s third quarter earnings call on Thursday.
As part of that effort, Elizabeth Arden plans to update a number of retail counters, beginning with its key flagship doors in September, with “modular, efficient and flexible designs.”
During the quarter ended March 31, the company’s profits moved from red to black. Net income for the three months was $2.2 million, or 7 cents a diluted share. This compared with a loss of $3.3 million, or 12 cents, in a year-ago period that included charges to pay down debt.Net sales in the quarter increased 3.5 percent to $239.3 million, from $231.3 million.
By region, international sales gained 6.3 percent, and sales in North America gained 1.7 percent over the year-ago period, boosted by growth in the mass channel, which offset a decline in prestige sales.
In North America, prestige sales were down low-double digits, as the company scaled back product in advance of the upcoming Elizabeth Arden brand repositioning, and as retailers worked to reduce inventory. Sales on the mass side of the business gained 7 percent, driven by strong shipments to both mass and midtier retailers.
For the nine-month period, net income gained $53.8 million, or $1.79 a diluted share, compared to $35.6 million, or $1.24 a share, in the prior-year period. Sales rose 5.5 percent to $972.7 million, from $921.8 million.
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