Tags: Elizabeth Arden | RDEN | cosmetics | consumer | retail | stocks

Elizabeth Arden Shines On Despite Loss

By    |   Monday, 27 Jun 2011 03:21 PM

Elizabeth Arden (RDEN), a leading distributor of fragrances, skin care products, and cosmetics, is working hard to keep itself attractive to customers and investors. The Miramar, Fla. company has a large portfolio of licensed brands including fragrances endorsed by such celebrities as recording artists Britney Spears, Mariah Carey, and Taylor Swift. Elizabeth Arden distributes the fragrance brands it owns or licenses in the United States, Canada, Puerto Rico, and in 100 countries outside North America.

Arden also distributes about 300 fragrances owned by other companies, mostly to buyers in the United States. It reports the results of its operations in two segments, one for North America, the other for the rest of the world. The company sells to department stores and mass-market retail store chains and to other wholesale distributors in North America. Its buyers on other continents include distributors as well as operators of perfume stores, boutique shops, department stores, and retail outlets that cater to travelers.

Perfumes and cosmetics hardly rank among life's necessities, of course, so Arden is vulnerable to economic trends that reduce household income growth and discourage consumer spending.

"Elizabeth Arden is one of the leading players in the fragrance space, though it is not immune to the increasingly challenging consumer-spending environment," Jeremy Cohen, a stock analyst with independent investment research firm Morningstar, wrote in a report on Arden.
In each of the last three years, the company's sales and earnings have remained below the pre-recession levels of 2007. But Arden recently was headed in the right direction.

No love lost

Arden earned net income of $35.5 million in the nine months ended March 31, up from $17.2 million in the prior comparable period. Revenue grew, year over year, in the nine-month period to $921.7 million from $875.5 million.

The company reported a net loss of $3.2 million in the seasonally slow fiscal third quarter, ended March 31, compared with a net loss of $3.8 million in the same period last year.

The loss did little to discourage Wall Street's love of the stock. Weeks after the third-quarter loss was announced on April 28, most stock analysts who follow Arden still recommended buying its stock.

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Elizabeth Arden (RDEN), a leading distributor of fragrances, skin care products, and cosmetics, is working hard to keep itself attractive to customers and investors. The Miramar, Fla. company has a large portfolio of licensed brands including fragrances endorsed by such...
Elizabeth Arden,RDEN,cosmetics,consumer,retail,stocks
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2011-21-27
Monday, 27 Jun 2011 03:21 PM
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