Thursday, beauty products company Elizabeth Arden, Inc. (RDEN) reported a narrower loss for the fourth quarter, benefited by lower expenses, despite a 10% decline in sales. Looking ahead, the company also provided guidance for the first quarter and full year 2010.
The Miramar, Florida-based company posted a second quarter net loss of $3.6 million or $0.13 per share, compared to a net loss of $10.4 million or $0.38 per share last year.
Adjusted net loss was $1.8 million or $0.07 per share, compared to net income of $6.3 million or $0.22 per share a year ago. On average, six analysts polled by Thomson Reuters expected the company to report a loss of $0.08 per share for the quarter.
Net sales decreased 10% to $212.6 million from $236.3 million a year ago. Analysts expected revenues of $213.36 million for the quarter.
Excluding the unfavorable impact of foreign currency translation, net sales decreased by 5.8%.
Segment wise, net sales of North America Fragrance declined to $116.4 million from $136.1 million, while International segment's net sales decreased to $85.2 million from $91.9 million last year.
Selling, General and Administrative Expenses for the quarter declined to $85.0 million from $97.5 million in the previous year.
For the full year, the company reported a net loss of $6.2 million or $0.22 per share, compared to net income of $19.9 million or $0.68 per share in the prior year. Adjusted net income for the year was $13.4 million or $0.47 per share, compared to $38.1 million or $1.31 per share in the last fiscal.
Net sales for the year decreased to $1.07 billion from $1.14 billion a year ago.
Analysts expected the company to report earnings of $0.45 per share on revenues of $1.07 billion for the year.
Looking ahead, the company anticipates first-quarter net sales to be in the range of $255 million-$265 million and net loss to be in the range of $0.03-$0.08 per share .
Analysts currently expect the company to post a loss of $0.04 per share on revenues of $275.43 million for the quarter.
The company expects fiscal 2010 net sales to increase by 2.0%-3.5% from prior year. Fiscal 2010 earnings are expected to be in the range of $0.50-$0.65 per share.
Street analysts currently anticipate earnings of $0.72 per share on revenues of $1.09 billion for the full year.
RDEN closed Thursday's regular trading on the Nasdaq at $10.45, down $0.54 or 4.91%. After hours, the stock is trading at $10.48, up $0.03 or 0.33%.
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