Zacks Investment Research downgraded
Elizabeth Arden Inc.
) to a Zacks Rank #5 (Strong Sell) on Jan 21, 2014.
Why the Downgrade?
Elizabeth Ardenhas witnessed sharp downward estimate revisions
after reporting bleak preliminary second-quarter fiscal 2014
results on Jan 16, 2014. The Miramar, Fla.-based cosmetics
company also withdrew the previous fiscal 2014 guidance based on
weak sales during the second quarter.
The company is scheduled to report second-quarter fiscal 2014
results (ended Dec 31, 2013) on Feb 5, 2014.
Elizabeth Arden expects to report net sales between $415
million and $418 million in the second quarter versus a range of
$450 million to $475 million guided earlier. The company expects
earnings per share to range between $1.05 and $1.08, lower than
the guidance range of $1.30 to $1.60, due to soft sales during
the quarter. Management also blames increased promotional
activity to be responsible for lower earnings during the second
Weaker-than-expected holiday sales prompted management to
lower the top- and bottom-line forecasts for the second quarter.
Like Elizabeth Arden, many U.S.-based retailers like
Ross Stores Inc
) have witnessed weakness during the latest holiday season.
The Zacks Consensus Estimate came down 27.2% to $1.07 for the
second quarter over the last seven days. For fiscal 2014 most of
the estimates were revised downward over the last seven days,
sinking the Zacks Consensus Estimate by .6% to $2.09.
Fiscal 2014 Outlook Withdrawn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 announced that sales are expected to grow
between 3.0% and 5.0% year over year for fiscal 2014. Earnings
were expected in the range of $2.15 to $2.30, representing
approximately 4% growth at the mid-point.
However, in the light of the preliminary second-quarter
results, Elizabeth Arden now decided to withdraw the fiscal 2014
guidance and will not provide any guidance in its second-quarter
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.