Elizabeth Arden Inc.’s second-quarter profits shot up 61.3 percent and the company raised its guidance for the year, but efforts by the Chinese government to improve safety controls have stymied growth in the country.
“The one weakness in terms of our international revenue growth was, for this quarter, our China business,” said E. Scott Beattie, chairman, president and chief executive officer, on a conference call with analysts. “We continue to experience new product registration challenges consistent with the rest of the industry and, as a result, we’re slowing our new store growth and focusing on growing sales and productivity of existing stores.”
The company sells beauty and fragrance products in 100 countries under a host of brands, including Elizabeth Arden, Britney Spears, Juicy Couture and Rocawear.
Second-quarter profits rose to $34 million, or $1.19 a diluted share, from $21.1 million, or 73 cents, a year earlier. Adjusted earnings of $1.20 a share came in well ahead of the $1.04 Wall Street was expecting.
The New York-based firm operated more efficiently in the quarter, cutting the costs of goods sold by 3 percent to $211.2 million, which helped the small uptick in sales go much further on the bottom line.
Sales for the quarter ended Dec. 31 rose 3.1 percent to $405.6 million from $393.3 million, with U.S. sales flat at $275.1 million and international revenues advancing 10.5 percent to $130.5 million.
The company raised its profit guidance for the year to a range of $1.40 to $1.50 a share, up from the $1.15 to $1.25 previously projected.
From overseeing America’s fastest-growing speciality retailers to codifying cool, WWD talked to the women who are leading the way for the future of beauty. Check out our Instagram Stories to see how these women built today and are creating tomorrow. (📸: @hannah_khymych) #wwdbeauty
For @laperlalingerie's spring 2018 show, the brand chose to host their event at @thevenetianmacao. With Chinese megastars @bingbing_fan and @hubing in attendance, La Perla debuted a rock ‘n’ roll-inspired collection. The show marked the start of Sands Macao Fashion Week, which runs from October 19 to 24 — the city’s first such event. Pictured here are models backstage with glimmering eyes. #wwdfashion (📷: Cheuk-Yin To)
Trending for spring 2018: top stitch design. Gone are the days of stitch just for seams — designers are using the once-minimal detail to create strong decorative elements. (📷: Paola Testa; Styled by @andrew_shang) #wwdfashion
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)