By a News Reporter-Staff News Editor at Investment Weekly News -- Elizabeth Arden, Inc. (NASDAQ:RDEN), a global prestige beauty products company, announced financial results for its fourth fiscal quarter and year ended June 30, 2014. FISCAL 2014 RESULTS Net sales for the fiscal year ended June 30, 2014, were $1.164 billion, a decrease of 13.4% from the prior year, or 12.8% excluding the impact of foreign currency rates. On an adjusted basis, net sales were $1.174 billion, a decrease of 12.7% from the prior year, or 12.1% excluding the impact of foreign currency rates. The net loss per diluted share for the fiscal year ended June 30, 2014, was $4.90. The net loss for the current year includes a valuation allowance of $89.5 million recorded as a non-cash charge recorded against U.S. deferred tax assets. On an adjusted basis, excluding non-recurring items, net loss per diluted share for the fiscal year ended June 30, 2014, was $0.55. The non-recurring items include Elizabeth Arden repositioning and restructuring costs, a one-time gain related to the reversal of a contingent liability associated with an acquisition, and costs associated with the Company's 2014 Performance Improvement Plan (the "2014 Improvement Plan") that was announced on June 23, 2014. A reconciliation between GAAP and adjusted results can be found in the tables and footnotes at the end of this press release. FOURTH QUARTER RESULTS Net sales for the three months ended June 30, 2014, were $191.7 million, a decrease of 28.4%, as compared to the prior year. On an adjusted basis, net sales were $201.2 million, a decrease of 24.8% as compared to the prior year. Net loss per diluted share for the fourth quarter of fiscal 2014 was $5.24. On an adjusted basis, excluding the non-recurring items discussed above, net loss per diluted share for the fourth fiscal quarter of 2014 was $1.04. A reconciliation between GAAP and adjusted results can be found in the tables and footnotes at the end of this press release.
While the Company had expected weaker sales comparisons due to the lower level of fragrance launch activity in fiscal 2014 versus fiscal 2013, the decline in sales of celebrity fragrances, particularly the Justin Bieber and Taylor Swift fragrances, was steeper than anticipated. The inventory destocking at a number of non-prestige customers that impacted the Company's 2014 third fiscal quarter results continued through the fourth quarter of fiscal 2014 and led the Company's shipments to be below the rate of retail sales. The Company also proactively tightened distribution globally across its key Elizabeth Arden branded products and certain other pillar fragrance brands during fiscal 2014 to improve pricing and gross margins, which negatively impacted sales and profits, but is beginning to result in improved pricing.
By segment, for the 2014 fiscal year, net sales of the Company's North America and International segments declined by 14% and 8% (at constant currency rates), respectively. Retail sales at the Company's Elizabeth Arden flagship counters have increased 9% in North America since conversion, and retail sales at the Company's international flagship doors have increased 8% since conversion, or 16% excluding underperforming travel retail doors in Korea. The Company notes that the converted flagship doors are now in their second year and, as a result, the Company will not be reporting on this metric going forward.
Keywords for this news article include: Elizabeth Arden Inc., Finance and Investment.
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