Elizabeth Arden, Inc. Announces Second Quarter Fiscal 2014 Results

  Elizabeth Arden, Inc. Announces Second Quarter Fiscal 2014 Results

Business Wire

NEW YORK -- February 5, 2014

Elizabeth Arden, Inc. (NASDAQ:RDEN), a global prestige beauty products
company, announced today financial results for its second fiscal quarter ended
December 31, 2013.

SECOND QUARTER RESULTS

Net sales for the second fiscal quarter were $418 million, a decrease of
10.6%, or 10.1% excluding the impact of foreign currency rates. Net income per
diluted share was $1.16. On an adjusted basis, excluding non-recurring items,
net income per diluted share was $1.08. The non-recurring items include
Elizabeth Arden repositioning and restructuring costs and a one-time benefit
related to the reversal of a contingent liability associated with an
acquisition. A reconciliation between GAAP and adjusted results can be found
in the tables and footnotes at the end of this press release.

Net sales of the Company’s North America segment decreased by 13% for the
second fiscal quarter as compared to the prior year period. Net sales were
impacted by weaker than anticipated holiday retail sales and replenishment
orders at a number of North American mass and mid-tier retail accounts, in
part due to decreased consumer traffic at those retailers, and a higher volume
of fragrance launch activity in the prior year. Performance at prestige
retailers was solid and in-line with expectations. Retail sales of Elizabeth
Arden branded products in North American prestige retailers were strong,
increasing by approximately 4%, which was better than the performance of the
overall category.

Net sales of the Company’s international segment decreased by 5%, or 4% at
constant currency rates, for the second fiscal quarter as compared to the
prior year period. The Company’s Greater China region posted strong sales
growth during the quarter, but weak performance in the Company’s European
markets, where sales of fragrances were impacted by an increased level of
highly promotional and discounted activity, drove the net sales decline for
the quarter.

For the first six months of fiscal 2014, net sales of Elizabeth Arden branded
skin care and color products rose by 6% (at constant currency rates) in the
aggregate and sales of fragrances were flat (at constant currency rates).
Retail sales at the Company's Elizabeth Arden flagship counters have increased
16% in North America year over year since conversion, and retail sales at the
Company’s international flagship doors have increased 13% since conversion, or
21% excluding underperforming travel retail doors in Korea.

E. Scott Beattie, Chairman, President and Chief Executive Officer commented,
“Our results in the second quarter are highly sensitive to the performance of
North American mass retailers, which was weak during the holiday season. We
are confident that this is not an issue with the commercial execution of that
business, the fragrance category or our brands, and that our recent results
are not reflective of the underlying strength of our fragrance brand
portfolio.”

Mr. Beattie continued, “Right now, the priorities for the Company are to
return to more consistent profitability and improved return on invested
capital. With the new senior leadership team, we are fully engaged in
preparing and implementing plans targeted towards reaccelerating gross margin
improvement and earnings growth. This is a comprehensive process that will be
focused on improving the commercial execution of our international business,
strengthening our travel retail and distribution relationships, better
leveraging our overhead structure and re-deploying capital to priority markets
and brands.”

SIX MONTH RESULTS

Net sales for the six months ended December 31, 2013, were $762 million, a
decrease of 6.2%, or 5.6%, excluding the impact of foreign currency rates. Net
income per diluted share was $1.21. On an adjusted basis, excluding
non-recurring items, net income per diluted share was $1.30. The non-recurring
items include Elizabeth Arden repositioning and restructuring costs and a
one-time gain related to the reversal of a contingent liability associated
with an acquisition. A reconciliation between GAAP and adjusted results can be
found in the tables and footnotes at the end of this press release.

The Company will host a conference call today, February 5, 2014 at 8:30 a.m.
Eastern Time to discuss its results. All interested parties can listen to a
live web cast of the Company's conference call by visiting the Investor
Relations section of the Corporate tab on the Company's web site at
http://ir.elizabetharden.com. An online archive of the broadcast will be
available within one hour of the completion of the call and will be accessible
on the Company's web site until March 5, 2014.

Elizabeth Arden is a global prestige beauty products company with an extensive
portfolio of prestige beauty brands sold in over 100 countries. The Company's
brand portfolio includes Elizabeth Arden skincare, color and fragrance
products, the celebrity fragrance brands of Britney Spears, Elizabeth Taylor,
Justin Bieber, Mariah Carey, Nicki Minaj, Taylor Swift, Usher and Jennifer
Aniston; the designer fragrance brands of Juicy Couture, Alfred Sung,
BCBGMAXAZRIA, Geoffrey Beene, Halston, Bob Mackie, Ed Hardy, John Varvatos,
Lucky Brand, True Religion and Rocawear; and the lifestyle fragrance brands
Curve, Giorgio Beverly Hills, and PS Fine Cologne.


                                                                             
  ELIZABETH ARDEN, INC. AND SUBSIDIARIES

  CONSOLIDATED STATEMENT OF INCOME DATA

  (Unaudited)

  (In thousands, except percentages and per share data)
                                                          
                     Three Months Ended            Six Months Ended
                     December      December        December      December
                     31,           31,             31,           31,
                     2013         2012            2013         2012
                                                                             
  Net Sales          $ 418,137     $ 467,919       $ 761,746     $ 812,460
                                                                             
  Cost of Goods
  Sold:
  Cost of Sales        225,236       229,966         418,910       425,577
  Depreciation
  Related to          1,987       1,487         3,817       3,018   
  Cost of Goods
  Sold
  Total Cost of        227,223       231,453         422,727       428,595
  Goods Sold
                                                                             
                                                                             
  Gross Profit         190,914       236,466         339,019       383,865
  Gross Profit         45.7    %     50.5    %       44.5    %     47.2    %
  Percentage
                                                                             
  Selling,
  General and          129,003       163,253         258,375       292,660
  Administrative
  Expenses
  Depreciation
  and                 11,137      9,372         21,836      18,501  
  Amortization
  Total
  Operating            140,140       172,625         280,211       311,161
  Expenses
                                                                             
  Interest            5,734       6,424         11,766      12,622  
  Expense, Net
  Income Before        45,040        57,417          47,042        60,082
  Income Taxes
  Provision for       10,384      12,608        10,798      13,089  
  Income Taxes
  Net Income           34,656        44,809          36,244        46,993
  Net Loss
  Attributable
  to                  (297    )    --            (406    )    --      
  Noncontrolling
  Interests
  Net Income
  Attributable
  to Elizabeth       $ 34,953     $ 44,809       $ 36,650     $ 46,993  
  Arden
  Shareholders
                                                                             
                                                                             
                                                                             
                                                                             
  As reported:
  Net Income Per
  Basic Share
  Attributable       $ 1.18        $ 1.51          $ 1.24        $ 1.59
  to Elizabeth
  Arden
  Shareholders
                                                                             
  Net Income Per
  Diluted Share
  Attributable       $ 1.16        $ 1.47          $ 1.21        $ 1.54
  to Elizabeth
  Arden
  Shareholders
                                                                             
  Basic Shares         29,649        29,680          29,648        29,617
  Diluted Shares       30,129        30,492          30,182        30,498
                                                                             
  EBITDA (a)         $ 63,898      $ 74,700        $ 84,461      $ 94,223
  EBITDA margin        15.3    %     16.0    %       11.1    %     11.6    %
  (a)
                                                                             
  Adjusted to
  exclude
  non-recurring
  costs, net of
  taxes
  (b)(c)(d):
                                                                             
  Gross Profit       $ 200,048     $ 241,898       $ 351,925     $ 404,017
  Gross Profit         47.8    %     51.7    %       46.2    %     49.7    %
  Percentage
                                                                             
  Net Income
  Attributable
  to Elizabeth       $ 32,650      $ 48,057        $ 39,402      $ 61,498
  Arden
  Shareholders
                                                                             
  Net Income Per
  Basic Share
  Attributable       $ 1.10        $ 1.62          $ 1.33        $ 2.08
  to Elizabeth
  Arden
  Shareholders
                                                                             
  Net Income Per
  Diluted Share
  Attributable       $ 1.08        $ 1.58          $ 1.30        $ 2.02
  to Elizabeth
  Arden
  Shareholders
                                                                             
  EBITDA (a)         $ 57,415      $ 80,514        $ 84,547      $ 115,101
  EBITDA margin        13.7    %     17.2    %       11.1    %     14.2    %
  (a)
                                                                             

(a) EBITDA is defined as net income attributable to Elizabeth Arden
shareholders plus the provision for income taxes (or net loss attributable to
Elizabeth Arden shareholders, less the benefit from income taxes) plus
interest expense, plus depreciation and amortization, plus net income or loss
attributable to noncontrolling interest. EBITDA should not be considered as an
alternative to income from operations or net income attributable to Elizabeth
Arden shareholders (as determined in accordance with generally accepted
accounting principles (GAAP)) as a measure of our operating performance or to
net cash provided by operating activities (as determined in accordance with
GAAP) or as a measure of our ability to meet cash needs. We believe that
EBITDA is a measure commonly reported and widely used by investors and other
interested parties as a measure of a company's operating performance and debt
servicing ability because it assists in comparing performance on a consistent
basis without regard to capital structure, depreciation and amortization or
non-operating factors (such as historical cost). Accordingly, as a result of
our capital structure, we believe EBITDA is a relevant measure. This
information has been disclosed here to permit a more complete comparative
analysis of our operating performance relative to other companies and of our
debt servicing ability. EBITDA may not, however, be comparable in all
instances to other similar types of measures. We have also disclosed EBITDA as
adjusted without giving effect to acquisition-related, Elizabeth Arden brand
repositioning and restructuring costs, as well as other non-recurring costs.
This disclosure is being provided for comparability purposes because we
believe it is meaningful to our investors and other interested parties to
understand the EBITDA performance of the Company on a consistent basis without
regard to the effect of acquisition-related, Elizabeth Arden brand
repositioning and restructuring and other non-recurring costs.

The table below reconciles net income attributable to Elizabeth Arden
shareholders, as determined in accordance with GAAP, to EBITDA and to EBITDA
as adjusted: (For a reconciliation of net income attributable to Elizabeth
Arden shareholders or net income to EBITDA for prior periods, see the
Company's filings with the Securities and Exchange Commission which can be
found on the Company's website at www.elizabetharden.com.)

                                              
  (In thousands)      Three Months Ended            Six Months Ended
                      December 31,   December       December     December
                                    31,            31,         31,
                      2013
                                     2012           2013         2012
                                                                             
  Net Income
  Attributable to     $  34,953      $ 44,809       $ 36,650     $ 46,993
  Elizabeth Arden
  Shareholders
  Plus:
  Provision for          10,384        12,608         10,798       13,089
  income taxes
  Interest               5,734         6,424          11,766       12,622
  expense, net
  Depreciation
  related to cost        1,987         1,487          3,817        3,018
  of goods sold
  Depreciation
  and                    11,137        9,372          21,836       18,501
  amortization
  Net loss
  attributable to       (297    )    --           (406   )    --      
  noncontrolling
  interest
  EBITDA                 63,898        74,700         84,461       94,223
  Non-recurring         (6,483  )    5,814        86         20,878  
  costs (c) (d)
  EBITDA as           $  57,415     $ 80,514      $ 84,547    $ 115,101 
  adjusted
                                                                             

The table below reconciles net cash flow provided by (used in) operating
activities, as determined in accordance with GAAP, to EBITDA:

     (Amounts in thousands)               Six Months Ended
                                                 December 31,   December 31,
                                                 2013             2012
          Net cash provided by (used in)         $  15,233        $  (10,888 )
          operating activities
          Changes in assets and liabilities,        56,832           92,306
          net of acquisitions
          Interest expense, net                     11,766           12,622
          Amortization of senior note               (685    )        (682    )
          offering and credit facility costs
          Provision for income taxes                10,798           13,089
          Deferred income taxes                     (6,258  )        (9,376  )
          Amortization of share-based awards       (3,225  )       (2,848  )
          EBITDA                                 $  84,461       $  94,223  
                                                                             

(b) The table below reconciles the calculation of (i) gross profit and net
income attributable to Elizabeth Arden shareholders and (ii) net income per
share attributable to Elizabeth Arden shareholders on a basic and diluted
basis from the amounts reported in accordance with GAAP to such amounts before
giving effect to acquisition-related, Elizabeth Arden brand repositioning and
restructuring costs, as well as other non-recurring costs. This disclosure is
being provided for comparability purposes because we believe it is meaningful
to our investors and other interested parties to understand our operating
performance on a consistent basis without regard to the effect of
acquisition-related, Elizabeth Arden brand repositioning and restructuring
costs, as well as other non-recurring costs. The presentation in the table
below of the non-GAAP information titled “Gross profit as adjusted,” “Net
income attributable to Elizabeth Arden shareholders as adjusted” and “Net
income per basic and diluted share attributable to Elizabeth Arden
shareholders as adjusted” is not meant to be considered in isolation or as a
substitute for gross profit, net income attributable to Elizabeth Arden
shareholders or net income per basic or diluted share attributable to
Elizabeth Arden shareholders prepared in accordance with GAAP.

                                               
(In thousands,
except per share      Three Months Ended           Six Months Ended
data)
                      December 31,  December      December     December
                                     31,           31,           31,
                      2013           2012          2013          2012
Gross Profit:
Gross Profit, as      $  190,914     $  236,466    $  339,019    $  383,865
reported
Non-recurring           9,134        5,432        12,906       20,152
costs (c) (d)
Gross Profit, as      $  200,048    $  241,898    $  351,925    $  404,017
adjusted
                                                                             
Net Income
Attributable to
Elizabeth Arden
Shareholders:
Net income
attributable to
Elizabeth Arden       $  34,953      $  44,809     $  36,650     $  46,993
shareholders, as
reported
Non-recurring
costs, net of tax       (2,303  )     3,248        2,752        14,505
(c) (d) (e)
Net income
attributable to
Elizabeth Arden       $  32,650     $  48,057     $  39,402     $  61,498
shareholders, as
adjusted
                                                                             
Net Income Per
Basic Share
Attributable to
Elizabeth Arden
Shareholders:
Net income per
basic share
attributable to       $  1.18        $  1.51       $  1.24       $  1.59
Elizabeth Arden
shareholders, as
reported
Non-recurring
costs, net of tax       (0.08   )     0.11         0.09         0.49
(c) (d) (e)
Net income per
basic share
attributable to       $  1.10       $  1.62       $  1.33       $  2.08
Elizabeth Arden
shareholders, as
adjusted
                                                                             
Net Income Per
Diluted Share
Attributable to
Elizabeth Arden
Shareholders:
Net income per
diluted share
attributable to       $  1.16        $  1.47       $  1.21       $  1.54
Elizabeth Arden
shareholders, as
reported
Non-recurring
costs, net of tax       (0.08   )     0.11         0.37         0.48
(c) (d) (e)
Net income per
diluted share
attributable to       $  1.08       $  1.58       $  1.58       $  2.02
Elizabeth Arden
shareholders, as
adjusted
                                                                             

(c) For the three months ended December 31, 2013, gross profit and net income
includes $8.6 million (pre-tax) of non-recurring product changeover costs
related to the repositioning of the Elizabeth Arden brand and $0.5 million
(pre-tax) of transition costs incurred related to the restructuring discussed
in the following sentence. In addition, net income includes (i) a credit of
$17.2 million (pre-tax) for the complete reversal of the remaining balance of
the contingent liability for potential payments to Give Back Brands LLC, (ii)
$0.9 million (pre-tax) of restructuring and related transition expenses
primarily incurred with respect to the elimination of sales and other staff
positions, and (iii) $0.7 million (pre-tax) of non-recurring product
changeover expenses related to the repositioning of the Elizabeth Arden brand.
For the six months ended December 31, 2013, gross profit and net income
includes $12.4 million (pre-tax) of non-recurring product changeover costs
related to the repositioning of the Elizabeth Arden brand and $0.5 million
(pre-tax) of transition costs incurred related to the restructuring discussed
above. In addition, net income includes (i) a credit of $17.2 million
(pre-tax) for the complete reversal of the remaining balance of the contingent
liability for potential payments to Give Back Brands LLC, (ii) $3.3 million
(pre-tax) of restructuring expenses and related transition expenses, and (iii)
$1.1 million (pre-tax) of non-recurring product changeover expenses related to
the repositioning of the Elizabeth Arden brand.

(d) For the three months ended December 31, 2012, gross profit and net income
include (i) $1.9 million (pre-tax) of inventory-related costs primarily for
inventory purchased by us from New Wave Fragrances LLC and Give Back Brands
LLC prior to the acquisitions and other transition costs, and (ii) $3.6
million (pre-tax) of non-recurring product changeover costs related to the
repositioning of the Elizabeth Arden brand. In addition, net income for the
three months ended December 31, 2012, includes $0.3 million (pre-tax) of
non-recurring product changeover expenses related to the repositioning of the
Elizabeth Arden brand. For the six months ended December 31, 2012, gross
profit and net income include $13.2 million (pre-tax) of inventory–related
costs primarily for inventory purchased by us from New Wave Fragrances LLC and
Give Back Brands LLC discussed above, and $7.0 million (pre-tax) of
non-recurring product changeover costs related to the repositioning of the
Elizabeth Arden brand. In addition, net income includes $0.3 million (pre-tax)
in transition costs associated with the New Wave Fragrances LLC and Give Back
Brands LLC acquisitions and $0.4 million (pre-tax) of non-recurring product
changeover expenses related to the repositioning of the Elizabeth Arden brand.

(e) Our effective tax rate on a reported basis, which is calculated as a
percentage of income before income taxes, was 23.1% and 23.0% for the three
and six months ended December 31, 2013, respectively. On a reported basis, for
the three and six months ended December 31, 2012, our effective tax rate, was
22.0% and 21.8%, respectively. On an adjusted basis, our effective tax rate
was 16.1%.and 17.3% for the three and six months ended December 31, 2013,
respectively. On an adjusted basis, for both the three and six months ended
December 31, 2012, our effective tax rate was 24.0%.

                              SEGMENT NET SALES

The table below is a comparative summary of our net sales by reportable
segment for the three and six months ended December 31, 2013 and 2012:

(In             Three Months Ended     % Decrease           Six Months Ended       % Increase
thousands)                                                                              (Decrease)
                  December    December               Constant   December    December              Constant
                  31,        31,         GAAP                 31,        31,         GAAP    
                                                     Rates                                        Rates
                  2013        2012                   (f)        2013        2012                  (f)
Segment Net                                                                                  
Sales
North America     $ 269,647   $ 311,077   (13.3 )%   (13.1 )%   $ 494,306   $ 542,634   (8.9 )%   (8.6  )%
International      148,490   156,842   (5.3  )%  (4.4  )%    267,440   269,826   (0.9 )%  0.5   %
Total             $ 418,137  $ 467,919   (10.6 )%  (10.2 )%   $ 761,746  $ 812,460   (6.2 )%  (5.6  )%
                                                                                                           

                          PRODUCT CATEGORY NET SALES

The table below is a comparative summary of our net sales by product category
for the three and six months ended December 31, 2013 and 2012:

(In          Three Months Ended     % Decrease           Six Months Ended       % Increase
thousands)                                                                          (Decrease)
              December    December               Constant   December    December               Constant
              31,        31,         GAAP                 31,        31,         GAAP     
              2013        2012                   Rates      2013        2012                   Rates
                                                 (f)                                           (f)
Product
Category                                                                                  
Net Sales
Elizabeth
Arden         $ 142,158   $ 147,957   (3.9  )%   (3.6  )%   $ 262,682   $ 256,436   2.4   %    3.1   %
Brand
Celebrity,
Lifestyle,
Designer      275,979   319,962   (13.7 )%  (13.2 )%    499,064   556,024   (10.2 )%  (9.6  )%
and
Other
Fragrances
Total         $ 418,137  $ 467,919   (10.6 )%  (10.2 )%   $ 761,746  $ 812,460   (6.2  )%  (5.6  )%
                                                                                                        

(f) Constant currency information compares results between periods assuming
exchange rates had remained constant period-over-period and excludes gains and
losses from foreign currency contracts in all periods. We calculate constant
currency information by translating current-period results using prior-year
GAAP foreign currency exchange rates. The gains and/or losses from foreign
currency contracts were not material for all periods presented.

                                                                             
                                                                             
ELIZABETH ARDEN, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET DATA
(Unaudited)
                                                           
(In thousands)                     December 31,   June 30,      December 31,
                                   2013           2013          2012
Cash                               $  43,894      $ 61,674      $  46,003
Accounts Receivable, Net              275,349       211,763        288,479
Inventories                           344,888       310,934        322,835
Property and Equipment, Net           110,785       106,588        91,769
Exclusive Brand Licenses,
Trademarks and Intangibles,           289,809       296,416        305,598
Net
Goodwill                              31,607        21,054         21,054
Total Assets                          1,196,665     1,103,732      1,168,683
Short-Term Debt                       97,950        88,000         103,500
Current Liabilities                   360,134       293,359        334,058
Long-Term Liabilities                 281,877       295,091        295,686
Long-Term Debt                        250,000       250,000        250,000
Redeemable Noncontrolling             6,615         --             --
Interest
Shareholders' Equity                  548,039       515,282        538,939
Working Capital                       376,861       364,320        392,422



SUPPLEMENTARY CASH FLOW INFORMATION
(Unaudited)
(In thousands)
                                             
                                                 Six Months Ended
                                                 December 31,   December 31,
                                                 2013             2012
                                                                  
Net cash provided by (used in) operating         $  15,233        $  (10,888 )
activities
Net cash used in investing activities               (28,248 )        (27,072 )
Net cash (used in) provided by financing            (4,712  )        24,816
activities
Net decrease in cash and cash equivalents           (17,780 )        (13,077 )
                                                                             
                                                                             

In connection with the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995, Elizabeth Arden, Inc. is hereby providing
cautionary statements identifying important factors that could cause our
actual results to differ materially from those projected in forward-looking
statements (as defined in such act). Any statements that are not historical
facts and that express, or involve discussions as to, expectations, beliefs,
plans, objectives, assumptions or future events or performance (often, but not
always, indicated through the use of words or phrases such as "will likely
result," "are expected to," "will continue," "is anticipated," "should,"
"estimated," "intends," "plans," "believes" and "projects") may be
forward-looking and may involve estimates and uncertainties which could cause
actual results to differ materially from those expressed in the
forward-looking statements. These statements include, but are not limited to,
our guidance and expectations regarding net sales, earnings, gross margins,
operating cash flow and returns on invested capital. In addition, any such
statements are qualified in their entirety by reference to, and are
accompanied by, the following key factors that have a direct bearing on our
results of operations:

    factors affecting our relationships with our customers or our customers'
    businesses, including the absence of contracts with customers, our
    customers' financial condition, and changes in the retail, fragrance and
*  cosmetic industries, such as the consolidation of retailers and the
    associated closing of retail doors as well as retailer inventory control
    practices, including, but not limited to, levels of inventory carried at
    point of sale and practices used to control inventory shrinkage;
    risks of international operations, including foreign currency
    fluctuations, hedging activities, economic and political consequences of
*   terrorist attacks, disruptions in travel, unfavorable changes in U.S. or
    international laws or regulations, diseases and pandemics, and political
    instability in certain regions of the world;
*   our reliance on license agreements with third parties for the rights to
    sell most of our prestige fragrance brands;
    our reliance on third-party manufacturers for substantially all of our
*   owned and licensed products and our absence of contracts with suppliers
    of distributed brands and components for manufacturing of owned and
    licensed brands;
    delays in shipments, inventory shortages and higher supply chain costs
*   due to the loss of or disruption in our distribution facilities or at key
    third party manufacturing or fulfillment facilities that manufacture or
    provide logistic services for our products;
    our ability to respond in a timely manner to changing consumer
    preferences and purchasing patterns and other international and domestic
*   conditions and events that impact retailer and/or consumer confidence and
    demand, such as domestic or international recessions or economic
    uncertainty;
*   our ability to protect our intellectual property rights;
*   the success, or changes in the timing or scope, of our new product
    launches, advertising and merchandising programs;
*   our ability to successfully manage our inventories;
*   the quality, safety and efficacy of our products;
*   the impact of competitive products and pricing;
    our ability to (i) implement our growth strategy and acquire or license
    additional brands or secure additional distribution arrangements, (ii)
*   successfully and cost-effectively integrate acquired businesses or new
    brands, and (iii) finance our growth strategy and our working capital
    requirements;
    our level of indebtedness, our ability to realize sufficient cash flows
*   from operations to meet our debt service obligations and working capital
    requirements, and restrictive covenants in our revolving credit facility,
    second lien facility and the indenture for our 7 3/8% senior notes;
*   changes in product mix to less profitable products;
*   the retention and availability of key personnel;
    changes in the legal, regulatory and political environment that impact,
    or will impact, our business, including changes to customs or trade
*   regulations, laws or regulations relating to ingredients or other
    chemicals or raw materials contained in products or packaging, or
    accounting standards or critical accounting estimates;
*   the success of our global Elizabeth Arden brand repositioning efforts;
    the impact of tax audits, including the ultimate outcome of the pending
*   Internal Revenue Service examination of our U.S. federal tax returns for
    the fiscal years ended June 30, 2008 and June 30, 2009, changes in tax
    laws or tax rates, and our ability to utilize our deferred tax assets;
    our ability to effectively implement, manage and maintain our global
    information systems and maintain the security of our confidential data
*   and our employees' and customers' personal information, including our
    ability to successfully and cost effectively implement the last phase of
    our Oracle global enterprise system;
    our reliance on third parties for certain outsourced business services,
*   including information technology operations, logistics management and
    employee benefit plan administration;
    the potential for significant impairment charges relating to our
    trademarks, goodwill, investments in other entities or other intangible
*   assets that could result from a number of factors, including such
    entities’ business performance or downward pressure on our stock price;
    and
*   other unanticipated risks and uncertainties.

We caution that the factors described herein could cause actual results to
differ materially from those expressed in any forward-looking statements we
make and that investors should not place undue reliance on any such
forward-looking statements. Further, any forward-looking statement speaks only
as of the date on which such statement is made, and we undertake no obligation
to update any forward-looking statement to reflect events or circumstances
after the date on which such statement is made or to reflect the occurrence of
anticipated or unanticipated events or circumstances. New factors emerge from
time to time, and it is not possible for us to predict all of such factors.
Further, we cannot assess the impact of each such factor on our results of
operations or the extent to which any factor, or combination of factors, may
cause actual results to differ materially from those contained in any
forward-looking statements. This press release is qualified in its entirety by
the cautionary statements and risk factor disclosure contained in our
Securities and Exchange Commission filings, including our Annual Report on
Form 10-K for the year ended June 30, 2013.

Contact:

Elizabeth Arden, Inc.
Marcey Becker, Senior Vice President, Finance
or
Investors/Press:
Integrated Corporate Relations
Allison Malkin/Michael Fox, 203-682-8200
 
Press spacebar to pause and continue. Press esc to stop.