A series of one-time charges from restructuring and a preferred stock issue contributed to a large first-quarter loss at Elizabeth Arden Inc.
In the three months ended Sept. 30, the New York-based beauty firm’s net loss came to $45.8 million, or $1.54 a diluted share, versus net income of $1.7 million, or 6 cents a share, in the year-ago period. Stripping out a $20.1 million accretion charge tied to the issuance of redeemable preferred stock and other elements of its restructuring plan, the adjusted loss came to 43 cents a diluted share, 10 cents lower than the 53-cent deficit expected, on average by analysts.
Sales in the quarter fell 21.3 percent to $270.4 million from $343.6 million. The consensus estimate among analysts was for revenues of $275.1 million.
E. Scott Beattie, chairman, president and chief executive officer, said, “Our first-quarter results were in line with our expectations, with sales and earnings declines that we expected and forecast. As we previously stated, fiscal 2015 is a rebuilding year, and during the quarter we continued to advance the key elements of our turnaround plans.”
He noted the recent establishment of a joint venture with the Chalhoub Group in the Middle East and said the company expects to reach a similar arrangement covering Southeast Asia in 2015.
Arden said that M. Steven Langman, co-founder and managing director of Rhône Group LLC, and Franz-Ferdinand Buerstedde, managing director of Rhône, have been elected to its board and that W. Nevil Thomas would retire at the company’s annual meeting. Langman will serve as Arden’s lead independent director.
Rhône holds the company’s outstanding preferred stock.