Elizabeth Arden Inc. reported its fiscal third-quarter earnings that beat analyst estimates for earnings and sales and builds upon the company’s turnaround plans.
The cosmetics brand reported a net loss for the quarter of $27.7 million, or 59 cents a diluted share, up from a loss of $34 million, or 86 cents, a year ago. This handily beat the FactSet estimate for a loss of 74 cents per share. The stock is popping almost 5 percent to $9.24 in early trading.
Net sales for the three months ended March 31 increased 0.1 percent to $191.9 million from $191.6 million a year earlier. This just squeaked by the FactSet estimate of $190 million. This is the fifth consecutive quarter of constant currency sales growth for both the Elizabeth Arden brands and its international segment.
North American net sales increased by 1 percent and international net sales increased by 7.5 percent. Fragrance sales grew by 3 percent and were helped by strong momentum from John Varvatos and Juicy Couture.
The company has also enhanced its social media presence to drive global demand. That helped lead to a 27 percent increase in net sales in the European region. The company restructured its team in China and also hired a senior executive for the Latin American market.
The company’s gross margins expanded to 43.9 percent for the quarter from 41.6 percent in the same time period for 2015. The improvement was attributed to a better sales mix and an improved cost structure.
Looking ahead, the company didn’t give specific numbers in its forecast. It is guiding for net sales to increase, gross margins to expand and costs to be lower. Foreign currency headwinds are expected to deliver a negative 3.5 percent hit. Arden plans on commenting on fiscal 2017 during its year-end press release.
The stock has fallen 38 percent for the past year, but in the last 3 months it has staged a comeback and has jumped 54 percent.