Elizabeth Arden, Inc.
) recently announced that its Chief Financial Officer, Stephen
Smith, has resigned to join
The Hain Celestial Group, Inc.
), a leading organic and natural products company.
Mr. Smith, CFO and Executive Vice president of Elizabeth
Arden, served the makeup and skin care company for the past 12
years. His extensive experience in working with consumer products
companies has helped in building a strong finance and accounting
team. He will join Hain on Sep 3, replacing the current CFO, Ira
J. Lamel, whose retirement was announced last September.
Smith announced his decision just a week after Elizabeth Arden
released dismal fourth-quarter and fiscal 2013 results.
Elizabeth Arden's fiscal fourth-quarter earnings per share of
10 cents missed the Zacks Consensus Estimate by 68.8% and the
year-ago earnings by 64.3% due to lower revenues and poor
margins. Revenues rose only 0.8% to $267.9 million but missed the
Zacks Consensus Estimate of $289 million.
The fiscal 2013 earnings and revenues also missed the Zacks
Consensus Estimate and fell short of the company's expectations.
The company's growth expectations for the Elizabeth Arden brand -
one of the most widely recognized beauty brands in the world -
proved to be too optimistic leading the company to perform below
expectations in the year.
Additionally, lower-than-expected orders from one of the
largest North American mass retail customers and weakness in
Europe, especially in the U.K., pulled down revenues in both the
fourth quarter and fiscal 2013.
In addition, Elizabeth Arden issued a relatively weak outlook
for fiscal 2014. For full year 2014, sales are expected to grow
between 3.0% and 5.0% year over year, much lower than the fiscal
2013 growth. Earnings are expected in the range of $2.15 to
$2.30, representing approximately 4% growth at the mid-point.
Other Stocks to Consider
Elizabeth Arden carries a Zacks Rank #5 (Strong Sell). Other
companies in the cosmetics industry that are currently doing well
Inter Parfums Inc.
Nu Skin Enterprises Inc.
). Both IPAR and NUS carry a Zacks Rank #1 (Strong Buy).
HAIN CELESTIAL (HAIN): Free Stock Analysis
INTER PARFUMS (IPAR): Free Stock Analysis
NU SKIN ENTERP (NUS): Free Stock Analysis
ELIZABETH ARDEN (RDEN): Free Stock Analysis
To read this article on Zacks.com click here.