Elizabeth Arden
This article was originally published in The Rose Sheet
Executive Summary
The acquisition of Livonia, Michigan-based prestige fragrance distributor Sovereign Sales will provide Arden with increased marketing share in the North American mass retail channel and allow the company to better leverage its sales and distribution structure, firm reports during Aug. 17 fourth quarter (ended June 30) earnings call. The acquisition was completed Aug. 11 and was financed with free cash flow and borrowings under an expanded bank credit facility. Arden recently acquired fragrance brand licenses from Canadian firm Riviera Concepts (1"The Rose Sheet" July 10, 2006, In Brief). The acquired businesses are expected to contribute to double-digit increases in sales this year. Fiscal year 2007 earnings per share will be in the range of $1.10-$1.20. Net sales for FY 2006 increased 3.7% to $954.6 mil., with net earnings fell 12.5% to $34.2 mil., excluding pre-tax charges. The Federated/May department store merger and inventory reduction initiatives led by mass retailers had a negative impact on sales and operating margins in FY 2006, firm notes...