Elizabeth Arden Falls Most Since 2009 After Forecast
Elizabeth Arden Inc. (RDEN) fell the most in four years after the maker of perfumes and cosmetics cut its fiscal 2013 profit forecast, citing slower fragrance sales during the holiday period.
The shares plunged 16 percent to $38.41 at the close in New York for the biggest decline since January 2009. The stock advanced 22 percent last year, while the Russell 2000 Index gained 15 percent.
The company, which sells celebrity-branded scents for names such as Justin Bieber and Britney Spears, cited slower sales during its fiscal second quarter at a mass retailer it didn’t identify. The perfume maker, which got about 33 percent of revenue from overseas in the most recent three-month period, also pointed to international weakness.
“International net sales were impacted by lower-than- expected inventory replenishment in our travel retail business and weakness in Greater China,” Chief Executive Officer, Scott Beattie said in a statement.
Profit for the year will be $2.30 to $2.50 a share, the Miramar, Florida-based company said. It had previously forecast a range of $2.55 to $2.70 a share. Analysts surveyed by Bloomberg estimated $2.66.
Second-quarter profit excluding acquisition-related expenses and non-recurring charges was $1.58 a share, trailing analysts’ average estimate of $1.64. Sales rose 8.8 percent to $467.9 million.
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