Beauty Industry

Elizabeth Arden Posts 1Q Loss

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By: Jamie Matusow

Editor-in-Chief

Beauty products maker Elizabeth Arden Inc. reported a fiscal first-quarter loss, reversing a prior-year profit, as results were weighed by transition expenses from recent acquisitions. The company also backed its financial forecast for the rest of the year. For the quarter ended Sept. 30, the company reported a net loss of $1.3 million, or 5 cents per share, compared with a prior-year profit of $895,000, or 3 cents per share. Excluding restructuring charges for its European operations, the quarter’s loss totaled $421,000, or 2 cents per share. Revenue rose to $254.8 million, from $227.4 million in the year-earlier period. Elizabeth Arden said the quarter’s results were stronger than expected, but affirmed its sales and earnings targets for this year’s first half. It also said it shifted part of its promotional spending from the first quarter into the current period to capitalize on holiday spending. For the first six months of fiscal 2007 ending Dec. 31, it still expects sales to range between $660 million to $675 million, and earnings between 75 cents to 85 cents per share.

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