Elizabeth Arden, Inc. Announces Third Quarter Fiscal 2014 Results

  Elizabeth Arden, Inc. Announces Third Quarter Fiscal 2014 Results

Business Wire

NEW YORK -- May 12, 2014

Elizabeth Arden, Inc. (NASDAQ:RDEN), a global prestige beauty products
company, today announced financial results for its third fiscal quarter ended
March 31, 2014.

THIRD QUARTER RESULTS

Net sales for the third fiscal quarter were $210.8 million, a decrease of
20.3%, or 19.4% excluding the impact of foreign currency rates. Net loss per
diluted share was $0.89. On an adjusted basis, excluding non-recurring items,
net loss per diluted share was $0.84. The non-recurring items include
Elizabeth Arden repositioning and restructuring costs. 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 23% to $121.9
million from $158.7 million in the prior year. The decline in net sales was
primarily due to fewer fragrance launches in the fiscal 2014 period as
compared to the prior year and lower replenishment orders at a number of
non-prestige retail accounts. Net sales of the Company’s international segment
decreased 16% to $89 million from $106 million in the prior year. At constant
currency rates, net sales decreased 14%. The sales decline in the
international segment reflects the Company’s efforts to maintain product
pricing across both Elizabeth Arden branded products and its key fragrance
brands.

Net sales of Elizabeth Arden branded skin care, color and fragrance products
declined by 19% for the third fiscal quarter and by 3% fiscal year-to-date, in
each case at constant currency rates. Retail sales at the Company's Elizabeth
Arden flagship counters have increased 11% in North America year-over-year
since conversion, and retail sales at the Company’s international flagship
doors have increased 11% since conversion, or 19% excluding underperforming
travel retail doors in Korea. The Company remains encouraged by the results,
particularly given that all of the flagship doors are now reaching the
anniversary of their reset dates.

NINE MONTH RESULTS

Net sales for the nine months ended March 31, 2014, were $972.6 million, a
decrease of 9.7%, or 9.0%, excluding the impact of foreign currency rates. Net
income per diluted share was $0.34. On an adjusted basis, excluding
non-recurring items, net income per diluted share was $0.48. 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.

E. Scott Beattie, Chairman, President and Chief Executive Officer commented,
“Clearly these results are not indicative of the strength and potential of our
brand portfolio. 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. We also did not have the same level of significant
fragrance innovation as we did last year. This coincided with an unprecedented
number of weather-related store closures in our North America business during
the quarter, which is our seasonally weakest quarter, exacerbating the impact
of these other factors and contributing to the weak overall results.”

Mr. Beattie continued, “These results are clearly disappointing, particularly
after several years of consistent improvement in gross margins and earnings.
The status quo is not acceptable. While we are encouraged by recent retail
sales performance in our North American mass fragrance business, we must
position the Company for success in an economic environment that remains
challenging. We are taking corrective action to improve the performance of the
business, focusing on tightening distribution, improving gross margins and
restoring profitability and return on invested capital to levels consistent
with historical results.”

As part of this process, the Company is proactively implementing a broad
restructuring and cost savings program across multiple dimensions focused on
reducing its overhead structure and improving gross margins. The Company is
currently targeting annual savings in the range of $40 million to $50 million
upon full implementation of this program. The Company is also evaluating a
shift in the focus of its international business to rely more heavily on
distributors and regional joint ventures that allow its brands to leverage
established commercial infrastructures with strong retail market share and
expertise. The Company will provide more detail on this plan, along with its
cost savings initiatives, on its call in August 2014.

Mr. Beattie concluded, “We fully recognize that we have a lot of work to do.
Our new Chief Financial Officer recently joined us and is now fully engaged.
He, along with our new Executive Vice President, International and the rest of
our commercial teams are fully committed to making the changes necessary to
move us towards more predictable and sustainable profitability.”

EXPLORATION OF STRATEGIC ALTERNATIVES

The Company has engaged Goldman, Sachs & Co. to assist the Board of Directors
in exploring potential strategic alternatives to enhance shareholder value and
to accelerate the growth and maximize the value of its brand portfolio. There
can be no assurance that the Company will pursue any strategic alternatives,
whether its review will result in any transaction being entered into or
consummated or what the form or terms and conditions of any such strategic
alternative may be. The Company does not intend to make any additional
disclosure unless and until such disclosure is required.

The Company will host a conference call today, May 12, 2014 at 4:30 p.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 June 12, 2014.

Elizabeth Arden is a global prestige beauty products company with an extensive
portfolio of prestige beauty brands sold in over 120 countries. The Company's
brand portfolio includes Elizabeth Arden skincare, color and fragrance
products; its professional skin care line, Elizabeth Arden Rx; the celebrity
fragrance brands of Britney Spears, Elizabeth Taylor, Jennifer Aniston, Justin
Bieber, Mariah Carey, Nicki Minaj, Usher and Taylor Swift; the designer
fragrance brands of Juicy Couture, Alfred Sung, BCBGMAXAZRIA, Geoffrey Beene,
Halston, 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 OPERATIONS DATA
(Unaudited)
(In thousands, except percentages and per share data)
                                                                             
                      Three Months Ended           Nine Months Ended
                      March 31,     March 31,     March 31,    March 31,
                      2014         2013          2014        2013
                                                                             
Net Sales             $ 210,841      $ 264,484     $ 972,587     $ 1,076,944
Cost of Goods
Sold:
Cost of Sales           119,205        136,643       538,115       562,220
Depreciation
Related to Cost        1,967         1,656        5,784        4,674
of Goods Sold
Total Cost of           121,172        138,299       543,899       566,894
Goods Sold
                                                                             
Gross Profit            89,669         126,185       428,688       510,050
Gross Profit            42.5    %      47.7    %     44.1    %     47.4      %
Percentage
                                                                             
Selling, General
and                     107,338        111,597       365,713       404,257
Administrative
Expenses
Depreciation and       11,286        10,254       33,122       28,755
Amortization
Total Operating         118,624        121,851       398,835       433,012
Expenses
                                                                             
Interest Expense,      6,605         5,893        18,371       18,515
Net
(Loss) Income
Before Income           (35,560 )      (1,559  )     11,482        58,523
Taxes
(Benefit from)
Provision for          (8,626  )     (286    )    2,172        12,803
Income Taxes
Net (Loss) Income       (26,934 )      (1,273  )     9,310         45,720
Net Loss
Attributable to        (491    )     --           (897    )    --
Noncontrolling
Interests
Net (Loss) Income
Attributable to       $ (26,443 )    $ (1,273  )   $ 10,207      $ 45,720
Elizabeth Arden
Shareholders
                                                                             
                                                                             
As reported:
Net (Loss) Income
Per Basic Share
Attributable to       $ (0.89   )    $ (0.04   )   $ 0.34        $ 1.54
Elizabeth Arden
Shareholders
                                                                             
Net (Loss) Income
Per Diluted Share
Attributable to       $ (0.89   )    $ (0.04   )   $ 0.34        $ 1.50
Elizabeth Arden
Shareholders
                                                                             
Basic Shares            29,697         29,607        29,664        29,658
Diluted Shares          29,697         29,607        30,173        30,498
                                                                             
EBITDA (a)            $ (15,702 )    $ 16,244      $ 68,759      $ 110,467
EBITDA margin (a)       (7.4    )%     6.1     %     7.1     %     10.3      %
                                                                             
Adjusted to
exclude
non-recurring
costs, net of
taxes (b)(c)(d):
                                                                             
Gross Profit          $ 92,401       $ 129,561     $ 444,326     $ 533,578
Gross Profit            43.8    %      49.0    %     45.7    %     49.5      %
Percentage
                                                                             
Net (Loss) Income
attributable to       $ (24,854 )    $ 716         $ 14,548      $ 62,214
Elizabeth Arden
Shareholders
                                                                             
Net (Loss) Income
Per Basic Share
Attributable to       $ (0.84   )    $ 0.02        $ 0.49        $ 2.10
Elizabeth Arden
Shareholders
                                                                             
Net (Loss) Income
Per Diluted Share
Attributable to       $ (0.84   )    $ 0.02        $ 0.48        $ 2.04
Elizabeth Arden
Shareholders
                                                                             
EBITDA (a)            $ (12,350 )    $ 19,768      $ 72,197      $ 134,869
EBITDA margin (a)       (5.9    )%     7.5     %     7.4     %     12.5      %
                                                                             

(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).


(Amounts in        Three Months Ended            Nine Months Ended
thousands)
                     March 31,     March 31,       March 31,     March 31,
                     2014            2013            2014            2013
                                                                       
Net (Loss)
Income
Attributable to      $ (26,443 )     $  (1,273 )     $  10,207       $ 45,720
Elizabeth Arden
Shareholders
Plus:
(Benefit from)
provision for          (8,626  )        (286   )        2,172          12,803
income taxes
Interest               6,605            5,893           18,371         18,515
expense, net
Depreciation
related to cost        1,967            1,656           5,784          4,674
of goods sold
Depreciation and       11,286           10,254          33,122         28,755
amortization
Net loss
attributable to       (491    )       --             (897   )      --
noncontrolling
interest
EBITDA                 (15,702 )        16,244          68,759         110,467
Non-recurring         3,352           3,524          3,438         24,402
costs (c) (d)
EBITDA as            $ (12,350 )     $  19,768       $  72,197       $ 134,869
adjusted
                                                                       

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

(Amounts in thousands)                           Nine Months Ended
                                                   March 31,     March 31,
                                                   2014            2013
                                                                             
Net cash used in operating activities              $ (35,062 )     $ (8,848  )
Changes in assets and liabilities, net of            84,054          99,639
acquisitions
Interest expense, net                                18,371          18,515
Amortization of senior note offering and             (1,079  )       (1,024  )
credit facility costs
Amortization of senior note premium                  127             --
Provision for income taxes                           2,172           12,803
Deferred income taxes                                4,727           (6,371  )
Amortization of share-based awards                  (4,551  )      (4,247  )
EBITDA                                             $ 68,759        $ 110,467
                                                                             

(b) The table below reconciles the calculation of (i) gross profit and net
(loss) income attributable to Elizabeth Arden shareholders and (ii) net (loss)
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 (loss) income attributable to Elizabeth Arden shareholders as adjusted"
and "Net (loss) 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 (loss) income attributable to Elizabeth
Arden shareholders or net (loss) income per basic or diluted share
attributable to Elizabeth Arden shareholders prepared in accordance with GAAP.

(Amounts in
thousands, except    Three Months Ended            Nine Months Ended
per share data)
                       March 31,     March 31,       March 31,   March 31,
                       2014            2013            2014          2013
                                                                       
Gross Profit:
Gross Profit, as       $ 89,669        $ 126,185       $ 428,688     $ 510,050
reported
Non-recurring           2,732          3,376          15,638       23,528
costs (c) (d)
Gross Profit, as       $ 92,401        $ 129,561       $ 444,326     $ 533,578
adjusted
                                                                       
                                                                       
Net (Loss) Income
Attributable to
Elizabeth Arden
Shareholders:
Net (loss) income
attributable to
Elizabeth Arden        $ (26,443 )     $ (1,273  )     $ 10,207      $ 45,720
shareholders, as
reported
Non-recurring
costs, net of tax       1,589          1,989          4,341         16,494
(c) (d) (e)
Net (loss) income
attributable to
Elizabeth Arden        $ (24,854 )     $ 716           $ 14,548      $ 62,214
shareholders, as
adjusted
                                                                       
                                                                       
Net (Loss) Income
Per Basic Share
Attributable to
Elizabeth Arden
Shareholders:
Net (loss) income
per basic share
attributable to        $ (0.89   )     $ (0.04   )     $ 0.34        $ 1.54
Elizabeth Arden
shareholders, as
reported
Non-recurring
costs, net of tax       0.05           0.06           0.15         0.56
(c) (d) (e)
Net (loss) income
per basic share
attributable to        $ (0.84   )     $ 0.02          $ 0.49        $ 2.10
Elizabeth Arden
shareholders, as
adjusted
                                                                       
                                                                       
Net (Loss) Income
Per Diluted Share
Attributable to
Elizabeth Arden
Shareholders:
Net (loss) income
per diluted share
attributable to        $ (0.89   )     $ (0.04   )     $ 0.34        $ 1.50
Elizabeth Arden
shareholders, as
reported
Non-recurring
costs, net of tax        0.05            0.06            0.14          0.54
(c) (d) (e)
Net (loss) income
per diluted share
attributable to        $ (0.84   )     $ 0.02          $ 0.48        $ 2.04
Elizabeth Arden
shareholders, as
adjusted
                                                                       

(c) For the three months ended March 31, 2014, gross profit and net loss
includes $1.8 million (pre-tax) of non-recurring product changeover costs
related to the repositioning of the Elizabeth Arden brand and $0.9 million
(pre-tax) of transition costs incurred related to the restructuring discussed
in the following sentence. In addition, net loss includes $0.6 million
(pre-tax) of restructuring and related transition expenses primarily incurred
with respect to the elimination of sales and other staff positions. For the
nine months ended March 31, 2014, gross profit and net income includes $14.2
million (pre-tax) of non-recurring product changeover costs related to the
repositioning of the Elizabeth Arden brand and $1.4 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 based on our determination during
the second quarter of fiscal 2014 that it is not probable that the performance
targets for fiscal 2014 and 2015 would be met, (ii) $3.9 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 March 31, 2013, gross profit and net loss
includes (i) $0.6 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) $2.8
million (pre-tax) of non-recurring product changeover costs related to the
repositioning of the Elizabeth Arden brand. In addition, net loss for the
three months ended March 31, 2013, includes $0.1 million (pre-tax) in
transition costs associated with the New Wave Fragrances LLC and Give Back
Brands LLC acquisitions, and $0.1 million (pre-tax) of non-recurring product
changeover expenses related to the repositioning of the Elizabeth Arden brand.
For the nine months ended March 31, 2013, gross profit and net income include
$13.8 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 $9.7 million (pre-tax) of non-recurring product
changeover costs related to the repositioning of the Elizabeth Arden brand. In
addition, net income includes $0.4 million (pre-tax) in transition costs
associated with the New Wave Fragrances LLC and Give Back Brands LLC
acquisitions, and $0.5 million (pre-tax) of non-recurring product changeover
expenses related to the repositioning of the Elizabeth Arden brand.

(e) Our tax rates for fiscal 2014 were calculated using the discrete method
for our U.S. pre-tax income. Our tax rate on a reported basis, which is
calculated as a percentage of income or loss before income taxes, was 24.3%
and 18.9% for the three and nine months ended March 31, 2014, respectively. On
a reported basis, for the three and nine months ended March 31, 2013, our
effective tax rate was 18.3% and 21.9%, respectively. On an adjusted basis,
our tax rate was 21.3% and 8.5% for the three and nine months ended March 31,
2014, respectively. On an adjusted basis, for the three and nine months ended
March 31, 2013, our effective tax rate was 63.6% and 25.0%, respectively.

                              SEGMENT NET SALES

The table below is a comparative summary of our net sales by reportable
segment for the three and nine months ended March 31, 2014 and 2013:

(In             Three Months Ended        % Decrease              Nine Months Ended           % Increase
thousands)                                                                                            (Decrease)
                  March 31,     March 31,                  Constant     March 31,     March 31,                    Constant
                  2014        2013          GAAP       Rates        2014        2013            GAAP       Rates
                                                           (f)                                                     (f)
                                                                                                          
Segment Net
Sales
North America     $ 121,877     $ 158,746     (23.2 )%     (22.8 )%     $ 616,183     $ 701,380       (12.1 )%     (11.8 )%
International      88,964     105,738     (15.9 )%   (14.3 )%      356,404    375,564       (5.1  )%   (3.7  )%
Total             $ 210,841   $ 264,484     (20.3 )%   (19.4 )%     $ 972,587   $ 1,076,944    (9.7  )%   (9.0  )%
                                                                                                                         

                          PRODUCT CATEGORY NET SALES

The table below is a comparative summary of our net sales by product category
for the three and nine months ended March 31, 2014 and 2013:

                                                                                          
(In            Three Months Ended          % Decrease                Nine Months Ended             % Increase
thousands)                                                                                         (Decrease)
               March 31,     March 31,                  Constant     March 31,     March 31,                    Constant
               2014        2013          GAAP       Rates        2014        2013            GAAP       Rates
                                                        (f)                                                     (f)
                                                                                                       
Product
Category
Net Sales
Elizabeth
Arden          $ 85,857      $ 106,239     (19.2 )%     (18.5 )%     $ 348,539     $ 362,675       (3.9) %      (3.2  )%
Brand
Celebrity,
Lifestyle,
Designer        124,984    158,245     (21.0 )%   (20.0 )%       624,048    714,269       (12.6 )%   (11.9 )%
and Other
Fragrances
Total          $ 210,841   $ 264,484     (20.3 )%   (19.4 )%     $ 972,587   $ 1,076,944    (9.7  )%   (9.0  )%
                                                                                                                      

(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)                     March 31,       June 30,        March 31,
                                   2014            2013            2013
                                                                   
Cash                               $ 54,096        $ 61,674        $ 31,442
Accounts Receivable, Net             207,990         211,763         230,757
Inventories                          362,802         310,934         326,430
Property and Equipment, Net          112,445         106,588         96,166
Exclusive Brand Licenses,
Trademarks and Intangibles,          285,276         296,416         301,061
Net
Goodwill                             31,607          21,054          21,054
Total Assets                         1,157,954       1,103,732       1,104,335
Short-Term Debt                      65,113          88,000          116,250
Current Liabilities                  243,498         293,359         283,311
Long-Term Liabilities                384,666         295,091         295,612
Long-Term Debt                       356,623         250,000         250,000
Redeemable Noncontrolling            6,124           --              --
Interest
Shareholders' Equity                 523,666         515,282         525,412
Working Capital                      455,436         364,320         379,450
                                                                     

                                                                     
SUPPLEMENTARY CASH FLOW INFORMATION
(Unaudited)
(In thousands)
                                                                     
                                          Nine Months Ended
                                          March 31,      March 31,
                                          2014             2013
Net cash used in operating activities     $ (35,062)       $ (8,848  )
Net cash used in investing activities       (39,454  )       (38,456 )
Net cash provided by financing activities   67,182           20,410
Net decrease in cash and cash equivalents   (7,578   )       (27,638 )
                                                                     

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;
      decisions or actions resulting from our current reexamination of our
*     business and the broad restructuring and cost savings program that we
      are undertaking, including the timing and amount of any costs, expenses
      or charges that may be incurred as a result;
      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, 2010, 2011 and 2012, changes in tax laws
      or tax rates, and our ability to utilize our deferred tax assets and/or
      the establishment of valuation allowances related thereto;
      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
 
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