Shares in Elizabeth Arden's stock fell nearly two per cent after the cosmetics company reported a loss of nearly US$17 million (€14 m), for the quarter ended 1 May 2004, of which nearly US$3 million (€ 2.3 m) related to debt retirement, restructuring and a stock conversion.
In addition to increased sales at travel-related outlets, sales were also boosted by the launch of the new Elizabeth Arden Provocative Woman fragrance.
In a separate statement, the cosmetics company's chairman and chief executive officer Scott Beattie also explained why Elizabeth Arden was changing the end of its financial year from 31 January to 30 June: "For the past several years, the bulk of our holiday shipments straddled the third and fourth quarters. Combining October and November into the same fiscal quarter and shifting January, which is affected by replenishment orders and returns, out of the fourth quarter should provide more predictable earnings between fiscal quarters."
"It will also allow us to conduct our annual budgeting process after the holiday season when a full analysis of the retail performance can be performed and to conclude that process well before our year-end reporting activities," Beattie added.
Elizabeth Arden also revised upwards its earlier sales forecast relating to the five-month changeover period from just over $205 million (€168 m) to $215 million (€176 m).