Elizabeth Arden Inc.
), a manufacturer and distributor of beauty products, has won
global licenses of the Justin Bieber and Nicky Minaj fragrance
brands from Give Back Brands LLC.
Give Back Brands LLC is a prestige beauty company creating and
marketing leading-edge beauty and fragrance brands. It partners
with entertainment artists and other popular figures to create and
market its products. The proceeds from Give Back Brands operations
are donated to designated charities and also charity campaigns of
its celebrity partners.
Justin Bieber launched his debut fragrance brand 'Someday' with
Give Back Brands in June 2011. According to NPD (a market research
firm), 'Someday' was ranked the #1 women's fragrance launch of the
year 2011. Next in line is Justin Bieber's 'Girlfriend,' scheduled
to launch this summer.
International star Nicki Minaj also has an agreement with Give
Back Brands to launch her debut fragrance brand, which is scheduled
to hit the shelves of prestige U.S. department stores in fall of
The acquisition of these two from Give Back Brands adds a unique
dimension to Elizabeth Arden's portfolio strategy of powerful
Elizabeth Arden has a strong foothold in the musician perfume
market, and many of its brands are marketed and endorsed by popular
artists like Taylor Swift, Mariah Carey, Britney Spears and Hilary
The acquisition was on the heels of the buyout of the global
licenses and certain related assets for the Ed Hardy, True Religion
and BCBGMAXAZRIA fragrance brands from New Wave Fragrances, LLC on
May 31, 2012.
The True Religion brand was introduced in October 2008 and the
BCBGMAXAZRIA women's fragrance debuted successfully in the U.S. in
the fall of 2011.
The acquisition of Ed Hardy brand added perfumes like Love &
Luck, Hearts & Daggers and Ed Hardy Born Wild men's and several
women's fragrances to Elizabeth Arden's portfolio.
The global beauty product seller expects that the acquisition
will be accretive to its earnings in the first half of fiscal 2013.
Earnings per share are expected to be in the range of $1.95 to
$2.00 and gross margin is expected to expand by 200 to 250 basis
points year over year.
The Zacks Consensus Estimate for fiscal 2013 is $2.00 per
Elizabeth Arden closely competes with
Estee Lauder Companies Inc.
). Currently, Elizabeth Arden carries a Zacks #2 Rank (short-term
ESTEE LAUDER (EL): Free Stock Analysis Report
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