Beauty products maker Elizabeth Arden Inc. (RDEN: Quote) said Tuesday it has acquired the global licenses and certain related assets for the Justin Bieber and Nicki Minaj fragrance brands from Give Back Brands LLC. Terms of the transaction were not disclosed.
"Someday", the first fragrance from pop singer Justin Bieber, launched in Spring 2011. According to NPD, the fragrance became the number 1 women's fragrance launch of 2011 in U.S. department stores.
The second fragrance, "Justin Bieber's Girlfriend", is launching in U.S. department stores in the summer of 2012. Meanwhile, the first fragrance from rapper and singer Nicki Minaj is scheduled to debut at U.S. department stores in the fall of 2012.
Elizabeth Arden expects the transaction to be accretive to earnings beginning in the first half of fiscal 2013.
Excluding the impact of the transaction, the company affirmed its fiscal 2012 guidance for earnings per share of $1.95 to $2.00, net sales growth of 5 percent to 5.5 percent, and gross margin increase of 200 to 250 basis points over fiscal 2011.
The company noted that the outlook excludes any expenses related to its acquisition of the Ed Hardy, True Religion and BCBGMAXAZRIA fragrance licenses announced by the company on May 31.
On average, analysts polled by Thomson Reuters expect the company to earn $2.00 per share for the year on revenues of $1.24 billion.
Elizabeth Arden will provide further details and guidance for fiscal 2013 during its fourth quarter and fiscal year 2012 conference call in August.
In Tuesday's regular session, RDEN is trading at $35.70, up $0.51 or 1.45 percent on a volume of 30,891 shares.
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by RTT Staff Writer
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