Elizabeth Arden Partners with Wildfox - Analyst Blog

Elizabeth Arden Inc. ( RDEN ) has been reporting lower-than-expected earnings for the past few quarters due to poor sales and persistent declining demand in the fragrance business. In order to boost sales of the fragrance sector, the prestige beauty product company entered into an agreement with designer fashion brand, Wildfox Couture, to develop and market Arden's flagship fragrance brands.

Wildfox is a clothing and accessories brand sold in selected boutiques and department stores over 30 countries, including the U.K., France, Spain, Germany, Brazil, Japan, South Korea, Australia, Russia and Taiwan. The brand was founded by Jimmy Sommers and Kimberley Gordon.

The partnership is a strategic fit for Elizabeth Arden as it will be able to reach young, fashion-conscious consumers who prefer the popular designer knitwears by Wildfox Couture. For Wildfox, the agreement will provide a ready platform to debut in the fragrance business.

In the recently reported second quarter fiscal 2014 results, Elizabeth Arden's earnings of 84 cents fell short of the year-ago earnings as well as the Zacks Consensus Estimate due to continued poor demand in the fragrance business. Reduced store traffic and unprecedented store closings due to harsh winter resulted in the decline in the fragrance category.

Net sales of $210.8 million of the Zacks Rank #5 (Strong Sell) company also lagged year-ago results and the Zacks Consensus Estimate by 20.3% and 17.7%, respectively, due to lower year-over-year sales in all the geographical segments. Net sales of branded skin care, color and fragrance products declined 19% in the quarter due to poor demand.

Other Stocks to Consider

Other stocks in the industry that are performing well at the current level and are worth considering include Coty Inc. ( COTY ), TheKroger Co. ( KR ), Ingles Markets, Inc. ( IMKTA ). While Coty sports a Zacks Rank #1 (Strong Buy), Kroger and Ingles Markets have a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ELIZABETH ARDEN (RDEN): Free Stock Analysis Report

COTY INC-A (COTY): Free Stock Analysis Report

KROGER CO (KR): Free Stock Analysis Report

INGLES MARKET A (IMKTA): Free Stock Analysis Report

To read this article on click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More