Elizabeth Arden Q4 profits back in the black
Elizabeth Arden reported Q4 sales up 7.4 percent to $228.2m compared to the same period last year, an increase of 7.2 percent excluding the favorable impact of foreign currency.
Likewise, net income jumped into the black, up from a loss of $3.6m in the corresponding period last year, to reach $2.3m for the current quarter.
The net income was slightly in excess of predictions from Thomson Reuters, while the sales figure was reported to be largely in line with expectations.
Restructuring saves the day
Company CEO Scott Beattie underlined the impact the company’s restructuring project had had on the results for the quarter. Introduced two years ago, the global initiative has helped to increase operating income, mainly as restructuring costs fell significantly.
“Our Elizabeth Arden brand in particular is seeing strong momentum, with net sales increasing by 13.5 percent this past quarter,” Beattie said.
For the full year 2010, sales were up 3.1 percent to $1.1bn, while the favorable impact of foreign currency translations meant this figure only represented an increase of 1.6 percent.
Restructuring boosts profits
Net income for the full year jumped from a loss of $6.1m in 2009, to reach a positive figure of $19.5m, while EBITDA jumped from $67.8m to $80.6m.
Looking ahead to the next financial year, the company referred to a lag in retailer sell-through of stocks as being potentially problematic in the future.
As a result, the company said it expects sales in 2011 to increase by around 3.0 percent to 4.0 percent, assuming a negative impact from foreign currencies of approximately 0.5 percent.
