Citing a tough holiday season in the mass channel, Elizabeth Arden Inc. on Wednesday reported that net income attributable to company shareholders in the second quarter was $35 million, or $1.16 a diluted share, compared with $44.8 million, or $1.47 a share, in the year-ago period. Net sales for the quarter declined 10.6 percent to $418.1 million, compared with $467.9 million in the prior-year period.
Net sales in the company’s North America segment decreased by 13 percent in the quarter, impacted by a tough holiday selling season in the mass channel. The company said that its performance at prestige retailers was solid and in line with expectations. Sales of the Elizabeth Arden flagship brand gained approximately 4 percent in the quarter.
Net sales in Arden’s international segment in the quarter decreased by 5 percent, or 4 percent at constant currency rates, compared with the year-ago period. Growth in the Greater China region was offset by weak performance in the European markets, where fragrance sales were impacted by an increased level of promotional and discounted activity, according to the company.
E. Scott Beattie, chairman, president and chief executive officer, stated: “Our results in the second quarter are highly sensitive to the performance of North American mass retailers, which was weak during the holiday season. We are confident that this is not an issue with the commercial execution of that business, the fragrance category or our brands, and that our recent results are not reflective of the underlying strength of our fragrance brand portfolio.” He added, “Right now, the priorities for the company are to return to more consistent profitability and improved return on invested capital.”
Beattie cited the fragrance business in the U.S. mass market, conservative replenishment on the part of retailers and the company’s international fragrance business, particularly in Europe and its distributor business, for the causes of the weakness.
For the first half, net income was $36.7 million, or $1.21 a diluted share, compared with $47 million, or $1.54 a share. Net sales declined 6.3 percent to $761.7 million, compared with $812.5 million.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty