Share prices of cosmetics products company
Elizabeth Arden Inc.
) tumbled 18.9% on Jan 17, 2013 after the company reported bleak
second-quarter preliminary results and withdrew its previously
provided fiscal 2014 guidance on the previous day. The company is
scheduled to report its second quarter fiscal 2014 results (ended
Dec 31, 2013) on Feb 5, 2014.
Weaker-than-expected holiday sales prompted management to
lower its top and botoom line forecast for the second quarter.
Elizabeth Arden expects to report net sales between $415 million
and $418 million versus a range of $450 million to $475 million
guided earlier. Like Elizabeth Arden, many U.S.-based retailers
Ross Stores Inc.
) have witnessed weakness during the latest holiday season which
was highly promotional
The company expects earnings per share to range between $1.05
and $1.08 lower than previously announced guidance range of $1.30
The guidance excludes repositioning and restructuring costs of
27 cents per share and a one-time gain of 35 cents per share
related to the reversal of a contingent liability associated with
an acquisition. Management also blames increased promotional
activity to be responsible for lower earnings during the second
For the first half of fiscal 2014, North America's net sales
declined 9%, worse than the 1% net sales drop in other
international markets. Elizabeth Arden-branded product sales
climbed 2% but fragrances sales slid about 10%.
Fiscal 2014 Outlook Withdrawn
Elizabeth Arden also expects fiscal 2014 earnings and sales to
be below prior guidance range. In the first quarter conference
call, Elizabeth Arden said that sales are expected to grow
between 3.0% and 5.0% year over year for fiscal 2014. Earnings
were expected to be in the range of $2.15 to $2.30, representing
approximately 4% growth at the mid-point.
However, in the light of the prelimiray results of second
quarter, Elizabeth Arden now decided to withdraw its previously
provided fiscal 2014 guidance and will not provide any guidance
in its second-quarter conference call. The stock carries a Zacks
Rank #5 (Strong Sell).
FREDS INC (FRED): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
ELIZABETH ARDEN (RDEN): Free Stock Analysis
ROSS STORES (ROST): Free Stock Analysis
To read this article on Zacks.com click here.