Arden looks on the bright side despite sales drop
Elizabeth Arden Inc has reported a decrease in net sales of 10% to $212.6m for the fourth fiscal quarter of 2009. This slide has undoubtedly impacted the company’s year on year net sales for fiscal 2009, which at $1.07bn dropped 6.2% on the results for fiscal 2008.
Elizabeth Arden Inc has reported a decrease in net sales of 10% to $212.6m for the fourth fiscal quarter of 2009. This slide has undoubtedly impacted the company’s year on year net sales for fiscal 2009, which at $1.07bn dropped 6.2% on the results for fiscal 2008.
However, Arden is optimistic about its performance in a year that has witnessed it launch several successful products including its Pretty Elizabeth Arden and Viva la Juicy fragrances.
In addition, the company claims that its latest initiative, Arden’s Global Efficiency Re-engineering programme, has allowed it to improve gross margins, reduce inventories by $90m, and generate cash flow from operations of $37m. “Unfortunately the continued gap between retail sales and inventory replenishment will delay the impact these improvements will have on the operating results,” says Arden’s chairman, president and ceo, E Scott Beattie. “As retailer inventory replenishment improves, operating earnings should accelerate considerably.”
The company is not expecting its retail partners to return to normal replenishment of their basic stock inventory in 2010, but nevertheless predicts net sales to increase by 2% to 3.5% in fiscal 2010.