August 19 (Reuters) – Shares of Elizabeth Arden fell nearly 25% Friday morning on Wall Street after the announcement of the heaviest quarterly loss in the history of the company and an even stronger fall expected sales of celebrity fragrances, like Justin Bieber or Taylor Swift.
The American group of perfumes and cosmetics saw its sales fall by 28.4% in the fourth quarter of its fiscal year, to $ 191.7 million, and warned that this trend should continue over the six coming months.
For the full fiscal year 2014, sales fell 13.4%, with both a decrease in new perfume launches, movement of inventory reduction in retailers, larger trade discounts and reorganization of the distribution of certain brands, said Chief Financial Officer Rod Little.
Perfumes had accounted for 78% of the total turnover of the Group for the year 2013.
In North America, which generates half of total sales, lower annual sales was 14% and it accounts for half of the decline of celebrity fragrances.
These results soldent a year in which Elizabeth Arden saw a potential buyer waive redeem launched a restructuring and downsizing and mentioned a change in strategy.
On Tuesday, the group announced the entrance to the capital of the investment company Rhone Capital, which will invest $ 100 million initially for 7.6% of the shares and will come to the board.
In June, the decision of the South Korean LG Household & amp group; Healthcare renounce buy Elizabeth Arden had already cut the price of the latter. (Devika Krishna Kumar ,; Marc Angrand for the French service)
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