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.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast