NEW YORK — Elizabeth Arden Inc. on Thursday reported a minuscule increase in its second-quarter loss despite a 13.6 percent increase in sales.
For the three months ended July 26, the loss was $10.15 million, or 62 cents, from $10.13 million, also 62 cents, in the year-ago quarter. Sales spiked to $144.4 million from $127.2 million.
The cost of sales rose 10.6 percent to $87 million, and selling, general and administrative expenses, prompted by greater promotional and advertising spending, were up 17.8 percent to $56.3 million.
E. Scott Beattie, chairman and chief executive officer, said in a statement, “The improvement in the second quarter reflects the continued strength of our mass and international businesses as well as the gradual recovery in travel retail. Additionally, we are encouraged by the performance of our new launches, as we are realizing the benefits of the increased advertising and promotion we are putting behind our brand franchises.”
The company also said it has called for redemption of $20 million of its 10 3/8 percent senior notes due 2007. It expects to record a third-quarter charge of $300,000 in connection with the redemption.
For the six months the loss widened to $25.8 million, or $1.55, from $20.1 million, or $1.24, last year. Sales rose 4.4 percent to $279.2 million from $267.5 million.
The company confirmed previous guidance of annual sales of $790 million to $805 million, with diluted earnings per share of between 93 cents and 98 cents, based on current currency exchange rates.