News Column

Swift decline Sour note for perfumes

August 20, 2014

Reuters



Steeply falling sales of celebrity perfumes, particularly the Justin Bieber and Taylor Swift (pictured) brands, have sent cosmetics firm Elizabeth Arden into its biggest-ever quarterly loss.

The American company's shares plunged by a quarter on New York's Nasdaq exhange yesterday after it said fourth-quarter sales had fallen more than 28% and the weakness, which began a year ago, would continue for the next six months.

Perfumes accounted for 78% of sales in the company's 2013 financial year.

Net sales this year were hit by fewer launches of perfumes, retailers reducing inventory and heavier discounting.

Sales fell 13.4%, driven by a 14% fall in North America, which accounts for half of the company's business. About half the decline in the region was due to the fall in sales of its celebrity perfumes.

The net loss attributable to Elizabeth Arden widened to $155.9m in the fourth quarter from $5m a year earlier. Net sales fell to $191.7m from $267.6m. Photograph: Imaginechina/Rex



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Source: Guardian (UK)


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