Elizabeth Arden (RDEN) Posts Smaller Q3 Loss

Elizabeth Arden (NASDAQ: RDEN) reported Q3 EPS of ($0.59), $0.15 better than the analyst estimate of ($0.74). Revenue for the quarter came in at $191.9 million versus the consensus estimate of $190.33 million.

The Company continues to execute its turnaround plans. The Company posted its fifth consecutive quarter of constant currency net sales growth for both the Elizabeth Arden brand and its International segment and returned its non-Elizabeth Arden branded fragrance business and North American segment to constant currency net sales growth during the third fiscal quarter. Fiscal third quarter and year-to-date adjusted gross margins also increased by 260 and 110 basis points, respectively.

OUTLOOK

The Company currently expects the following for fiscal 2016 (on an adjusted basis):

• Net sales increases driven by the International business and the Elizabeth Arden brand (at constant foreign currency rates);

• Foreign currency headwinds to negatively impact full year net sales growth by approximately 3.5%;

• Gross margin expansion primarily due to better sales mix, improved commercial execution and improved cost structure;

• Lower overall selling, general and administrative expenses, with lower indirect overhead costs and targeted reinvestment in advertising to accelerate revenue growth; and

• Improved EBITDA margins from gross margin expansion and lower indirect overhead expenses.

For earnings history and earnings-related data on Elizabeth Arden (RDEN) click here.

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