Elizabeth Arden (RDEN) Updates on Cost Structure Review, 2014 Performance Improvement Plan

Elizabeth Arden (Nasdaq: RDEN) disclosed the following on Thursday:

As disclosed in prior filings made by Elizabeth Arden, Inc. (the "Company") under the Securities Exchange Act of 1934, as amended, the Company has been engaged in an ongoing review of its business and cost structure that is intended to improve the Company's overall performance, including gross margin and profitability, referred to in such filings as the 2014 Performance Improvement Plan. In connection with these ongoing efforts to reduce costs and complexity in the business, the Company reviewed its portfolio of fragrance brands in light of the recent sales performance and forecasts of certain brands, as well as industry trends, in order to identify strategies to simplify, and optimize the performance of, its fragrance brand portfolio. With this, the company has adopted (i) changes in its go-to-market strategy for certain of its fragrance brands, and (ii) reductions in the number of stock-keeping units of certain brands.

The Company currently estimates that these revised strategies to its fragrance brand portfolio will result in additional aggregate pre-tax charges in the fourth fiscal quarter of 2015 of approximately $60 million under its 2014 Performance Improvement Plan, which include approximately $42 million of non-cash charges for inventory impairments and approximately $18 million of related future cash expenditures. The Company intends to treat these charges as items impacting the comparability of results in its quarterly earnings releases. The audit committee of the board of directors of the Company approved these pre-tax charges on June 30, 2015.

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