Miramar, FL
954.364.6900
www.elizabetharden.com

Sales: $971 million for the year ended June 30, 2015.

All those timeless celebrities do have a shelf as it turns out, and time ran out on Elizabeth Arden. Last month, the company agreed to be acquired by Revlon for $870 million.

“We believe this is a compelling transaction that delivers certain value to our shareholders, while recognizing the unique equity in the Elizabeth Arden brand, our impressive fragrance portfolio and global footprint, as well as the positive momentum and growth potential for our business,” explained E. Scott Beattie, chairman, president and CEO, Elizabeth Arden. “We look forward to working with the Revlon leadership team to create a leading global beauty company, able to provide accelerated growth for the Elizabeth Arden-branded products as well as our prestige licensed fragrance portfolio, and broader opportunities for many of our employees.”

In the Age of YouTube and Instagram everyone wants to be famous—they just don’t want to smell like famous people anymore. The decline of celebrity scents hit Elizabeth Arden hard, very hard. The company’s sales fell again last year, this time 16.6%. In North America (57% of revenue) sales fell 17% in the region as nearly every fragrance brand, from Justin Bieber to Taylor Swift, reported a decline in sales.

International sales dropped 11%. The UK is EA’s largest international market with sales of $58 million last year, but the company said a distribution strategy change in China hurt results.

The declines continued into the new year. For the nine months ended March 31, 2016, sales fell 2.7% to $774 million.

Also in March, the company hired George Cleary as president, global fragrances. Cleary has more than 20 years of experience in beauty and personal care. His most recent role was as CEO, Iluminage, a fast growing global beauty device company. Prior to that, he held several senior positions at Coty Inc. including president, Americas, where he had full strategic and operational responsibility of the $1.2 billion business that spanned multiple beauty categories and channels.

Cleary wasted no time shaking things up.

In May, Elizabeth Arden said it will acquire the global license and certain related assets for the Christina Aguilera fragrance business from Procter & Gamble International. According to Arden, the singer’s scent the No. 1 celebrity fragrance brand in Europe.

The transaction is expected to close this quarter. A purchase price was not disclosed.

Miramar, FL
954.364.6900
www.elizabetharden.com

Sales: $1.1 billion, for the year ended June 30, 2014.

Celebrity is fleeting and fading—especially in the rough and tumble world of cosmetics. With a stable of fragrances from the likes of Justin Bieber and Taylor Swift, Elizabeth Arden’s sales fell again last year, dropping 13% as losses mounted.

As the situation grew from bad to worse, the company hired Goldman Sachs to explore a sale. When nothing turned up, private equity firm Rhône Capital took a 7.6% stake in Elizabeth Arden, with planned to raise its stake over time. To remedy the situation, more than a year ago, the company announced that it would exit low-return businesses and brands, unprofitable retail locations and fragrance licenses, and discontinue certain products. It also unveiled plans to reduce the size and cost of its overhead structure, and slash an unidentified number of jobs and shut its Puerto Rico affiliate. The cost-cutting measures, which Elizabeth Arden said it hopes will bolster long-term gross margins and profitability, are part of its broader turnaround plan that calls for $40 million and $50 million in annual savings.

So far, it’s not working. For the nine months ended March 31, 2015, sales fell 18% to about $795 million. The company reported a net loss of $117 million, compared to a net profit of $9 million the previous year.

In May, Elizabeth Arden signed supermodel Karlina Caune as a spokesmodel. As the new global face of the Elizabeth Arden brand, Caune will serve as brand ambassador, and appear in the brand’s advertising campaigns and marketing programs and at public relations events.

Miramar, FL
954.364.6900
www.elizabetharden.com

Sales: $1.3 billion. Net income: $40.7 million for the year ended June 30, 2013.

Is Elizabeth Arden on the selling block? That’s what Wall Street observers were speculating after LG publicly mulled a bid for Arden back in April. More questions arose the following month when the company reported poor results for its fiscal third quarter ended March 31. Net sales fell more than 20% to about $121 million. For the nine months, sales were down nearly 10% to about $973 million.

“Clearly these results are not indicative of the strength and potential of our brand portfolio,” noted E. Scott Beattie, chairman, president and CEO. “We have been hampered this year by weak performance in our North American mass fragrance business and a global environment that has been highly promotional. “  In an attempt to get growing again, the company board of directors approved a broad restructuring and cost savings program that is intended to reduce the size and cost of the company’s overhead structure and exit low-return businesses, customers and brands to improve gross margins and profitability in the long term.  The plan includes eliminating jobs, brands and retail partners, as well as closing its affiliate in Puerto Rico.

Last year, sales rose about 8% to more than $1.3 billion. Fragrance accounted for 78% of that total, followed by skin care and (17%) and cosmetics (5%).

Miramar, FL
954.364.6900
www.elizabetharden.com

Sales: $1.2 billion. Net income: $57.4 million for the year ended June 30, 2012.

Elizabeth Arden knows star power. The company has built a stable of celebrity scents that propelled sales 5.3% in fiscal 2012. Net sales for Elizabeth Arden branded products increased by $29.7 million due to higher sales in all product categories, primarily led by higher sales of skin care products. Net sales of licensed and other owned fragrance brands increased $5.1 million primarily due to the launches of the Taylor Swift fragrance Wonderstruck and the John Varvatos fragrance Star USA, as well as higher sales of Viva La Juicy and Curve fragrances. Partially offsetting these increases were lower sales of Mariah Carey, Britney Spears and Usher fragrances, as well as lower sales of other Juicy Couture fragrances due in part to the prior year launch of Peace, Love & Juicy Couture.

Sales in North America rose 2.9% to more than $778 million. Net sales of Elizabeth Arden brands were flat. To boost the EA brand, the company embarked on a repositioning program.

Net sales of licensed and other owned fragrance brands fell $5.3 million due to lower sales of Juicy Couture, Mariah Carey, Usher and Britney Spears fragrances. In contrast, the company reported higher sales from the launch of the Taylor Swift fragrance Wonderstruck as well as higher sales of Curve and the John Varvatos fragrance Star USA.

International sales increased 9.8% to nearly $460 million. Sales of Elizabeth Arden branded products increased  $29.8 million due to higher sales in all product categories, primarily led by higher sales of skin care products. Net sales of licensed and other owned fragrance brands increased by $10.4 million primarily due to higher sales of Viva La Juicy and John Varvatos fragrances, and the launch of the Taylor Swift fragrance Wonderstruck in select markets primarily in Australia and New Zealand. International results were led by higher sales of $21.3 million in Europe and $12.0 million in travel retail and distributor markets.

For the nine months ended March 31, 2013, sales jumped nearly 11% to almost $1.1 billion, For the year, the company expects sales to grow 9-11%.

During the fiscal third quarter, Elizabeth Arden opened its affiliate in Brazil and began commercial sales in that market in February. Company executives say the Elizabeth Arden brand repositioning has propelled retail sales in its flagship doors. The flagship model was established as a way for company executives to test, learn, and gather feedback on the repositioning of the Elizabeth Arden brand, as well as to build confidence in the growth potential of the brand with its key retail partners. The focus is on extending key elements of the flagship model to drive the Elizabeth Arden brand on a global basis, according to E. Scott Beattie, chairman, president and CEO.

Repositioning efforts led to a net loss of $1.3 million in fiscal Q3, but Beattie insisted that successful repositioning could double the brand’s sales.

Miramar, FL
954.364.6900
www.elizabetharden.com
Sales: $1.1 billion.
Net income: $40 million for the year ended June 30, 2011.

Bieber Fever? Elizabeth Arden’s got it, as well as a thing for Nicki Minaj. Last month, the company acquired the fragrance licenses for both recording stars for an undisclosed amount. What also wasn’t disclosed is how profits from sales of Bieber fragrances will be distributed. Give Back Brands, the company that held the Bieber license, was a non-profit organization that distributed its profits. Clearly, Elizabeth Arden acquired the Bieber license to make a buck or three.

Someday, the first fragrance from Bieber, debuted in Spring 2011 and became the No. 1 women’s fragrance launch of 2011 in US department stores, according to NPD Group, Port Washington, NY. The second fragrance, Justin Bieber’s Girlfriend, is currently launching in US department stores. Nicki Minaj, an R&B/hip hop artist, will launch her first scent in US department stores this fall.

The Bieber and Minaj license acquisitions came one month after Elizabeth Arden acquired the licensing rights to Ed Hardy, True Religion and BCBG Max Azria.

For the nine months ended March 31, 2012, Elizabeth Arden’s sales rose 5.5% to $972.7 million and net income jumped 51% to $35.5 million. According to E. Scott Beattie, the company’s results were in line with expectations. In the coming months, Elizabeth Arden will roll out new packages and product formulations as part of its brand repositioning.

“We continue to make considerable progress toward this initiative, which we believe will be transformational for our company,” explained Beattie. “We are on schedule to accomplish the rapid conversion of approximately 50 flagship customer doors by the end of September 2012, with a broader group of our customer doors to follow.”

For fiscal 2011, sales rose 6.5% and net income more than doubled. North American sales increased by 5%, according to the firm. International sales rose 9% on the strength of European and travel retail and distributor businesses. Global sales of Elizabeth Arden branded products increased by 8%, reflecting the company’s success at growing the Elizabeth Arden brand and the re-alignment of its marketing organization to better support global brand management, according to Beattie.

Miramar, FL

954.364.6900

www.elizabetharden.com

Sales: $1.1 billion

Sales:

$1.1 billion. Net income: $19.5 million for the year ended June 30, 2010.

For the nine months ended March 31, 2011, Elizabeth Arden reported a 5.3% increase in sales to $921.8 million. For the full year, the company expects sales to rise 5-6%. In November, Elizabeth Arden signed a licensing agreement with Taylor Swift to develop and market her own line of fragrances. The first scent will debut in prestige North American retailers in the fall.

For fiscal 2010, sales rose 3.1% on the success of the Couture Couture launch, as well as the continued rollout of Viva La Juicy. Sales of Britney Spears fragrances and Elizabeth Arden branded products increased too, but these increases were partially offset by a $20 million loss in distributed brand sales and a $13.5 million decline in sales of other fragrances, primarily Usher.

Sales in North America (61% of sales) rose less than 2% to nearly $673 million. Although sales to US department store customers decreased $17.4 million, sales to other customers, primarily mass customers, increased $28.2 million. International sales rose nearly 5% to more than $384 million. The gain was attributed, in part, to a $13.8 million increase in travel retail and the international rollout of Viva La Juicy and launches of Couture Couture and the Alberta Ferretti fragrance.

Miramar, FL
954.364.6900
www.elizabetharden.com
Sales: $1 billion

Sales:
$1 billion. Net loss: $6.2 million for the year ended June 30, 2009.

Last year was a “challenging year” financially, according to E. Scott Beattie, company chairman, president and chief executive officer, but the company is hoping to turn things around with its centennial celebration in 2010.

Net sales for the year fell 6.2% to just over $1 billion. Still, Beattie insisted that much was accomplished during the year.

“ Our global efficiency re-engineering initiative allowed us to improve gross margins, reduce inventories by $90 million year over year and generate cash flow from operations of $37 million,” he said.

Beattie also insisted that brand innovation remained strong. He pointed out that Pretty Elizabeth Arden was the No. 2 woman’s fragrance launch through June 2009 in the U.S. and is doing well internationally. Furthermore, Viva la Juicy was the No. 1 U.S. launch last fall and contributed to the continued global expansion and success of the Juicy Couture fragrance franchise.

These launches proved fruitful, as third quarter 2010 net sales, which ended March 31, rose 6.7% to $217 million. For the nine months ended March 31, the company reported a 2.1% gain in net sales to $875.5 million.

The company recently announced two new partnerships in its fragrance department with a fashionable twist. In March, Elizabeth Arden entered into an exclusive long-term global licensing agreement with Kate Spade New York. A debut fragrance is planned to launch in the fall of 2010. In April, the company also entered into an exclusive global licensing agreement for John Varvatos men’s and women’s fragrances—previously owned by Shiseido. The products are currently sold primarily in U.S. prestige department stores and in select markets internationally.

Miramar, FL
954.364.6900
www.elizabetharden.com
Sales: $1.1 billion

Sales: $1.1 billion. Net income: $19.9 million for the year ended June 30, 2008.

Sales rose 1.2% to more than $1.1 billion. Net income declined less than 3% to $38.1 million. In May 2008, the company announced an exclusive long-term global licensing agreement for the Liz Claiborne fragrance brands, which became effective on June 9, 2008.

According to E. Scott Beattie, the chairman, president and chief executive officer of Elizabeth Arden, the company finished the year in-line with expectations. International sales rose 9.2%, but the North America fragrance business declined 1.5%, largely due to the decline in the U.S. department store business. Arden’s mass retail business was flat year on year, a reflection of the difficult consumer environment.

For the nine months ended March 31, 2009, sales fell 5.2% to $857.7 million.

Miramar, FL
954.364.6900
www.elizabetharden.com
Sales: $1.1 billion

Sales:

$1.1 billion. Net income: $37.3 million for the year ended June 30, 2007.

Sales rose 18% to a record high and earnings jumped 18% too. Business was up across all geographies, tiers of distribution and brand portfolios. In particular,  North American fragrances and international business contributed to results, while sales of Elizabeth Arden brand skin care and color cosmetics rose 16%. Britney Spears fragrances represented just under 10% of sales, and her line continued to post gains. Sales of Prevage rose 45% last year, with 60% of those sales coming from outside the U.S.

International business accounted for 35% of sales, and the company posted good gains in Asia Pacific and travel retail as well as solid growth in Latin America and the Middle East. Sales in Greater China doubled last year, and the company expects sales will increase 50% this year.

For the nine months ended March 31, 2008, net sales rose 2.3% to $904.8 million and net income increased 9% to $30.3 million. The gain was attributed in part to the launch of M by Mariah Carey.

On June 10, Elizabeth Arden signed an agreement to manufacture, distribute and market the Liz Claiborne fragrance brands. Terms of the exclusive long-term global licensing agreement were not disclosed. Liz Claiborne designs and markets a global portfolio of retail-based premium brands including Juicy Couture and Lucky Brand.