Elizabeth Arden Inc.’s first-quarter profits fell sharply as the company focused on reshaping its namesake brand.
Net income declined 76.3 percent to $2.2 million, or 7 cents a diluted share, from $9.2 million, or 31 cents, a year earlier. Adjusting for costs to reposition the Elizabeth Arden brand as well as acquisition costs, income rose to 44 cents a diluted share, 2 cents better than the 42 cents analysts projected.
The company has said the changes it’s making could double the size of the Elizabeth Arden brand. Arden also took an interest in licensee Red Door Spa Holdings in September.
The company’s sales for the three months ended Sept. 30 rose 13.5 percent to $344.5 million from $303.5 million.
“Although early in the rollout, we are experiencing strong retail sales performance at the flagship doors with our revitalized Elizabeth Arden products,” said E. Scott Beattie, chairman, president and chief executive officer. “As we look forward to the holiday season, we believe that our significant innovation along with the continued rollout of Elizabeth Arden branded products has us well positioned to continue our positive performance.”
Arden confirmed its 2013 guidance for adjusted earnings per share of $2.55 to $2.70. Shares of the firm slipped 2 cents to $47.49.