Makeup and skin care company,
Elizabeth Arden, Inc. (
recently announced that it has taken a minority stake in Red Door
Spa Holdings, the owner of Elizabeth Arden Red Door Spas and the
Mario Tricoci Hair Salons.
Red Door Spa Holdings is privately-owned by North Castle
Partners and currently gets the trademark licenses for the
Elizabeth Arden and Red Door brands from Elizabeth Arden. The
upscale Red Door Spas is one of the most popular names in global
Elizabeth Arden has acquired the minority interest worth $12
million in partnership with hotel and resorts builder, J.H.
Anderson Holdings, Inc and its head John Anderson. The companies
have the option to acquire the remaining interest in Red Door Spa
Holdings. The deal is expected to boost sales of Elizabeth Arden
products as well as the business of Red Door Spas.
Elizabeth Arden is a leading global marketer and manufacturer of
prestige beauty products. Its brands include fragrance brands like
Elizabeth Arden and Red Door, celebrity fragrance brands of Britney
Spears, Elizabeth Taylor etc., skin care brands like Visible
Difference and Ceramides; and some cosmetic products under the
Elizabeth Arden brand. The Elizabeth Arden brand is one of the most
widely recognized beauty brands in the world.
We currently have an Outperform recommendation on Elizabeth
Arden. The stock carries a Zacks #1 Rank (a short-term 'Strong Buy'
Elizabeth Arden delivered solid fiscal fourth quarter results,
which included a 40.0% earnings surprise. In fact, the company has
beaten the Zacks Consensus Estimates for seven straight quarters.
With an encouraging outlook for the first quarter and fiscal 2013,
this company has bright prospects ahead.
Elizabeth Arden's main priorities are to expand international
distribution of its fragrance brands, mainly in Europe, and to
accelerate growth of its Elizabeth Arden brand. These initiatives,
augmented by some recent fragrance brand acquisitions, bode well
for healthy sales and margin growth in fiscal 2013.
ELIZABETH ARDEN (RDEN): Free Stock Analysis
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