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.
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)
@heriethpaul and @gracebol have a moment on the @victoriassecret fashion show 2017. See every look from the runway on WWD.com. Link in bio. (📷: @giovanni_giannoni_photo) #wwdfashion #victoriassecret #VSFashionShow
“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