) is trying hard to boost its sales after reporting unimpressive
second-quarter fiscal 2014 results last month. As part of this
strategy, last week, the Miramar, FL-based company launched the
latest Elizabeth Arden Rx skincare line. The new product will be
available exclusively at physicians' offices.
The launch goes in line with Elizabeth Arden's omni-channel
retail strategy under which it distributes its products at
prestige retail outlets and spas. Using professional skin care
offices as an outlet is expected to add a new dimension to the
company's marketing strategy. Consumers will be more confident
about the product if it is available at their skincare
specialists' chambers. This will help the company to reach its
consumers in a credible, science-based environment.
Elizabeth Arden has been striving to expand into the
professional medical channel. It has also invested in US
Cosmeceutechs, LLC (USC), a skin care company that develops and
sells skin care products through professional dermatology and spa
channels. The two companies first partnered in 2005 to launch
skin care brand Prevage which gained instant popularity. The new
skincare line has also been jointly designed by the two
Last month, the Zacks Rank #5 (Strong Sell) company posted
weak second-quarter fiscal 2014 results and also withdrew its
fiscal 2014 guidance.
Elizabeth Arden's second-quarter earnings of $1.08 fell short
of the year-ago earnings by 31.6% due to lower sales and gross
margins. Net sales of $418 million also lagged year-ago results
by 10.1% due to lower year-over-year sales in all the
geographical segments. Gross profit declined 17.3% year over year
to $200.0 million due to lower sales and higher depreciation
related to cost of goods sold.
Weak holiday sales due to bad weather conditions in December
and January were responsible for the weak results. Moreover, the
company reported higher inventory due to low traffic in the
company's mass retail accounts, and reduced discretionary
spending by consumers facing macroeconomic headwinds.
Like Elizabeth Arden, many U.S.-based retailers like
Ross Stores Inc
) registered lower-than-expected sales during the holiday
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