Thursday, beauty products company Elizabeth Arden, Inc. (RDEN), reported a narrower net loss for the third quarter though sales declined from last year, reflecting foreign currency exchange fluctuations. The company also lowered its earnings outlook for fiscal year 2009 and said it expects sales to decline further, citing continued weakness in its international markets, particularly its higher margin travel retail and distributor markets.
The Miramar, Florida-based company's net loss for the third quarter narrowed to $3.70 million or $0.13 per share from $3.81 million or $0.14 per share in the same quarter last year.
Net loss, excluding items for the quarter was $5.30 million or $0.19 per share, compared to a net loss of $2.90 million or $0.10 per share last year.
On average, six analysts' polled by Thomson Reuters expected the company to report a loss of $0.32 per share for the quarter. Analysts' estimates typically exclude one-time items
Net sales for the quarter decreased 3.4% to $203.50 million from $211.00 million in the year-ago quarter. Analysts had a consensus revenue estimate of $201.75 million for the quarter.
Net sales for the quarter, excluding the unfavorable impact of foreign currency translation, increased 1.3% from last year.
Gross profit percentage for the quarter was flat at 43.1% with the year-ago quarter.
Total operating expenses increased to $93.00 million from $89.30 million last year.
For the nine-month period, the company reported a net loss of $3.00 million or $0.09 per share, compared with a net income of $30.34 million or $1.04 per share in the same period last year. Net income, excluding items for the period declined to $15.21 million or $0.53 per share from $32.00 million or $1.09 per share in the prior-year period. Net sales for nine months decreased to $858.00 million from $905.00 million in the year-ago period.
For fiscal year 2009, Elizabeth Arden now expects earnings in the range of $0.38 - $0.50 per share, compared to earlier issued forecast of $0.71 - $0.84 per share.
Net sales are anticipated to decline by 6% - 6.5% or 2% - 2.5%, excluding an expected unfavorable impact from foreign currency translation. Previously the company had forecast net sales to decline by 4% - 5% or by 1% - 2% excluding an expected unfavorable impact from foreign currency.
Analysts currently expect the company to earn $0.74 per share on revenues of $1.09 billion for the full year.
The company's forecast excludes expenses and non-cash charges related to the Liz Claiborne license agreement and restructuring and expenses associated with its Global Efficiency Re-engineering project.
RDEN closed Thursday's trading at $8.05, down $0.53 or 6.18%, on a volume of 0.21 million shares on the Nasdaq. In after hours, the stock lost $0.01 or 0.09%, trading at $8.04.
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