Elizabeth Arden, which is in the process of being acquired by Revlon, posted a slight decline in sales for the fiscal year.
The business posted a $23.7 million net loss, or 79 cents a diluted share, for the quarter ended June 30. Consensus was for a loss of 78 cents a share.
Sales for the quarter were $192.7 million, a 9.8 increase from the prior-year period. The company’s North America segment increased net sales by 2.6 percent, while international net sales grew by 1.6 percent year-over-year.
For the full year, the company’s net loss was $74.4 million, from $246.3 million for fiscal 2015. Net sales for the year were $966.7 million, a 0.4 percent crease from the previous year. North America net sales decreased 3.6 percent, while international sales decreased 2.8 percent, year-over year. Arden recorded a loss of $1.25 a diluted share, versus $2.58 a share for fiscal 2015.
Elizabeth Arden branded products grew net sales by 14 percent, with double-digit growth in skin care, color cosmetics and fragrance. Non-Elizabeth Arden fragrances posted a net sales decline of 5 percent. Designer fragrances gained 5 percent because of strong sales from John Varvatos and Juicy Couture, the company said. White Diamonds and Curve also grew during the quarter.
Arden chairman and chief executive officer E. Scott Beattie, who was also on Revlon’s earnings call in July, shared a preview of the company’s earnings then, saying that adjusted for currency effects, for the fiscal year ended June 30, Arden’s North America business was up 3 percent, international increased 4.5 percent and the Arden brand experienced its sixth consecutive quarter of growth.
The two companies had already started integration planning, according to Beattie and Revlon ceo Fabian Garcia, who said the firms are working on synergy captures and plotting the combined future operating model. “In the past two weeks we kicked off integration planning,” Garcia said at the time. “The aim is to hit the ground running on day one.”
Beattie concluded Wednesday’s call saying, “This will likely be our last earnings call as a public company, and after 20 years of being public and more as the ceo of this company, I’d like to thank all of our shareholders, our bondholders, our board of directors and most particularly all the people that I’ve had the pleasure to work with to build this business. In both good times and challenging times the people of this company have had the creativity, the perseverance and the passion to drive for success. From the bottom of my heart I thank all of you for being part of this company and its future success with Revlon.”