Swine flu and poor travel retail sales to hit Elizabeth Arden
A slowdown in travel created by the swine flu outbreak, compounded by already weak travel retail sales is likely to hit Elizabeth Arden results, an analyst says.
Wedbush Morgan Securities analyst Rommel T. Dionisio said he was placing Elizabeth Arden shares on ‘hold’ because of the business's extensive exposure to the travel retail segment.
The company is due to reveal its third quarter results in the next few days, which many analysts, including Dionsio, believe will be hard hit by the marked downturn in travel brought about by the global economic crisis.
This is likely to affect Elizabeth Arden in the forth quarter, ending June 30, as all the indications are that the travel retail remains soft and will be further hit by the swine flu outbreak, which has already forced many travelers to cancel trips.
