Elizabeth Arden (RDEN) 8-K Elizabeth Arden, Inc. Announces Third Quarter Results

FOR IMMEDIATE RELEASE

ELIZABETH ARDEN, INC. ANNOUNCES THIRD QUARTER RESULTS

~ EPS of $0.19; Net Sales Up 9% to $198.3 million ~
~ Reaffirms Full Year Guidance ~
~ Elizabeth Arden and Allergan, Inc. to Co-Market PREVAGE^(TM); Anti-Aging Treatment ~

          New York, New York (May 4, 2005) -- Elizabeth Arden, Inc. (NASDAQ: RDEN), a global prestige beauty products company, today announced financial results for the three- and nine-month periods ended March 31, 2005.

THIRD QUARTER RESULTS

          In line with previously announced expectations, net sales advanced 9% to $198.3 million for the three months ended March 31, 2005, from $182.2 million in the third quarter of the prior fiscal year. The sales growth was driven by the roll-out of the Britney Spears'Curious fragrance into additional international and travel retail markets,Curious' continued success in U.S. department stores, and increased sales of theElizabeth Arden Provocative Womanfragrance. Excluding the favorable impact of foreign currency translation, net sales increased 6%.

          Gross margin continued to increase and expanded 250 basis points to 48.3% from 45.8% in the comparable period last year. This improvement reflects greater margin contribution from owned brands this year versus the same period last year, as well as lower promotional and operational expenses as a percentage of net sales. Selling, general and administrative expenses increased 21%, primarily due to increased advertising expenditures to support brand growth.

          Net income advanced to $5.6 million, or $0.19 per diluted share, from a net loss of $10.5 million, or $0.46 per share in the year-ago period. Excluding debt extinguishment and restructuring charges, earnings for the prior year period were $0.23 per diluted share.

          E. Scott Beattie, Chairman and Chief Executive Officer of Elizabeth Arden, Inc., commented, "Overall, we are pleased with our third quarter results. Sales growth was highlighted by the continued international rollout ofCurious,which thus far has experienced similar success to the launch in the U.S., where it was the number one launch in U.S. department stores during the 2004 holiday season and remains a top ten fragrance. We expect our fourth fiscal quarter, which is our seasonally slow quarter, to be executed according to plan and are in the process of finalizing our plans for the first half of fiscal 2006.

           "As we look ahead, we are excited about our pipeline of innovation and strategic initiatives, particularly the scheduled launch of a new fragrance for Britney Spears in U.S. department stores this fall and the recently announced alliance with Allergan, Inc. Through our collaboration with Allergan, a leader in pharmaceutical dermatology and the maker of Botox^(R) Cosmetic, we will be exclusively producing and marketing PREVAGE^(TM), the breakthrough anti-aging treatment to prestige retailers worldwide. The dermatology-inspired skin care market is experiencing explosive growth and we intend to take advantage of this opportunity by providing the latest and most effective anti-aging technology available to consumers globally. This initiative is expected to contribute to revenue and earnings growth beginning in the second half of fiscal 2006 and fiscal 2007. We look forward to providing more detail on these programs and the rest o f our plans for fiscal 2006 during our fiscal year end call in August," concluded Mr. Beattie.

NINE-MONTH RESULTS

          Net sales increased 8% to $733.4 million during the nine months ended March 31, 2005 from $677.4 million in the comparable period last year. Net income to common advanced to $42.1 million, or $1.41 per diluted share, versus a loss of $8.9 million, or $0.41 per share, for the nine-month period last year. Excluding debt extinguishment and restructuring charges as well as the accelerated accretion on the converted preferred stock, earnings for the prior year period were $1.32 per diluted share.

OUTLOOK

          For the full fiscal year ending June 30, 2005, the Company is reiterating its net sales guidance of $900 million to $910 million and its expectation of earnings per diluted share of $1.26 and $1.30, representing an increase of 25% to 29% over the prior fiscal year, excluding charges incurred in the prior year period.

CONFERENCE CALL INFORMATION

          The Company will host a conference call today at 5:00 p.m. Eastern Standard Time. All interested parties can listen to a live web cast of the Company's conference call by logging on to the Company's web site atwww.elizabetharden.com/corporate/calendar_of_events.asp. An online archive of the broadcast will be available within one hour of the completion of the call and will be accessible on the Company's web site atwww.elizabetharden.com until May 18, 2005.

Elizabeth Arden is a global prestige beauty products company. The Company's portfolio of brands includes the fragrance brands Elizabeth Arden's Red Door, Red Door Revealed, Elizabeth Arden 5^th Avenue, Elizabeth Arden green tea,ardenbeautyand Elizabeth Arden Provocative Woman, Elizabeth Taylor's White Diamonds, Passion and Forever Elizabeth, Britney Spears' Curious, White Shoulders, Geoffrey Beene's Grey Flannel, Halston, Halston Z-14, PS Fine Cologne for Men, Design and Wings; the Elizabeth Arden skin care lines, including Ceramide and Eight Hour Cream; and the Elizabeth Arden color cosmetics line.

Company Contact:	Marcey Becker, Senior Vice President, Finance
	(203) 462-5809
Investor/Press Contact:	Cara O'Brien, Lila Sharifian/Melissa Merrill
	Financial Dynamics
	(212) 850-5000

In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Elizabeth Arden, Inc., is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans" and "projection") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. Accordingly, any such statements are qualified in their entirety by reference to, and are accompanied by, the following ke y factors that have a direct bearing on our results of operations: our absence of contracts with customers or suppliers and our ability to maintain and develop relationships with customers and suppliers; international and domestic economic and business changes that could impact consumer confidence and operations; the impact of competitive products and pricing; risks of international operations, including foreign currency fluctuations, economic and political consequences of terrorist attacks, political instability in certain regions of the world, and external factors affecting customer purchasing patterns; our ability to successfully launch new products and implement our growth strategy; our ability to successfully and cost-effectively integrate acquired businesses or new brands; our substantial indebtedness, debt service obligations and restrictive covenants in our revolving credit facility and our indenture for our 7 3/4 % senior subordinated notes; our customers' financial condition; our ability to access capital for acquisitions; changes in product mix to less profitable products; the retention and availability of key personnel; the assumptions underlying our critical accounting estimates; delays in shipments, inventory shortages and higher costs of production due to interruption of operations at key third party manufacturing or fulfillment facilities that manufacture or provide logistic services for the majority of our supply of certain products; changes in the retail, fragrance and cosmetic industries; our ability to protect our intellectual property rights; changes in the legal, regulatory and political environment that impact, or will impact, our business, including changes to customs or trade regulations or accounting standards; and other risks and uncertainties. We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statement s. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

ELIZABETH ARDEN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS DATA

(Unaudited)

(In thousands, except percentages and per share data)

		Three Months Ended						Nine Months Ended
			March 31,			April 3,			March 31,			April 3,
			2005			2004			2005			2004
Net Sales		$	198,317		$	182,188		$	733,424		$	677,429
Cost of Sales			102,431			98,667			406,424			392,712
Gross Profit			95,886			83,521			327,000			284,717
Gross Profit Percentage (a)			48.3	%		45.8	%		44.6	%		42.0	%
Selling, General and Administrative Expenses			76,907			63,385			231,809			193,216
Depreciation and Amortization			5,176			5,273			16,158			15,758
Total Operating Expenses			82,083			68,658			247,967			208,974
Interest Expense, Net			5,582			6,772			17,841			26,623
Debt Extinguishment Charges			--			29,359			--			38,805
Other			--			(4	)		--			(5	)
Income (Loss) Before Income Taxes			8,221			(21,264	)		61,192			10,320
Provision for (Benefit from) Income Taxes			2,602			(10,725	)		19,064			(1,661	)
Net Income (Loss)			5,619			(10,539	)		42,128			11,981
Accretion and Dividend on Preferred Stock			--			593			--			2,291
Accelerated Accretion on Converted Preferred    Stock			--			--			--			18,584
Net Income (Loss) Attributable to Common    Shareholders		$	5,619		$	(11,132	)	$	42,128		$	(8,894	)
As reported:
	Basic Income (Loss) Per Share	$	0.20		$	(0.46	)	$	1.53		$	(0.41	)
	Diluted Income (Loss) Per Share	$	0.19		$	(0.46	)	$	1.41		$	(0.41	)
	Basic Shares		27,888			24,202			27,582			21,584
	Diluted Shares		30,164			24,202			29,890			21,584
	EBITDA (b)	$	18,979		$	(9,219	)	$	95,191		$	52,701
Adjusted before giving effect to the   accelerated accretion on the converted   Preferred Stock and debt extinguishment and   restructuring charges, net of taxes: (c)
	Net Income	$	5,619		$	5,962		$	42,128		$	33,320
	Basic Income Per Share	$	0.20		$	0.25		$	1.53		$	1.54
	Diluted Income Per Share	$	0.19		$	0.23		$	1.41		$	1.32
	Basic Shares		27,888			24,202			27,582			21,584
	Diluted Shares		30,164			28,890			29,890			27,027
EBITDA (b)		$	18,979		$	21,726		$	95,191		$	94,726

(a) Based on the percentage of net sales for the periods.

(b) EBITDA is defined as net income plus the provision for income taxes (or net loss less the benefit from income taxes), plus interest expense, plus depreciation and amortization. EBITDA should not be considered as an alternative to operating income (loss) or net income (loss) (as determined in accordance with generally accepted accounting principles) as a measure of our operating performance or to net cash provided by operating, investing and financing activities (as determined in accordance with generally accepted accounting principles) as a measure of our ability to meet cash needs. We believe that EBITDA is a measure commonly reported and widely used by investors and other interested parties as a measure of a company's operating performance and debt servicing ability because it assists in comparing performance on a consistent basis without regard to capital structure, depreciation and amortization or non-operating factors (such as historical cost). Accordingly, as a result of our c apital structure, we believe EBITDA is a relevant measure. This information has been disclosed here to permit a more complete comparative analysis of our operating performance relative to other companies and of our debt servicing ability. EBITDA may not, however, be comparable in all instances to other similar types of measures.

The following is a reconciliation of net income (loss), as determined in accordance with generally accepted accounting principles, to EBITDA: (For a reconciliation of net income to EBITDA for prior fiscal year periods, see the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2004 which can be found on the Company's website at www.elizabetharden.com). (In thousands)

		Three Months Ended					Nine Months Ended
		March 31,		April 3,			March 31,		April 3,
		2005		2004			2005		2004
Net income (loss)		$	5,619	$	(10,539	)	$	42,128	$	11,981
Plus:
	Provision for (benefit from) income taxes		2,602		(10,725	)		19,064		(1,661	)
	Interest expense, net		5,582		6,772			17,841		26,623
	Depreciation and amortization		5,176		5,273			16,158		15,758
EBITDA			18,979		(9,219	)		95,191		52,701
Debt extinguishment charges			--		29,359			--		38,805
Restructuring charges			--		1,586			--		3,220
EBTIDA excluding debt extinguishment and    restructuring charges		$	18,979	$	21,726		$	95,191	$	94,726

(c) The following tables reconcile the calculation of net income (loss) per share on a basic and fully diluted basis from the amounts reported in accordance with generally accepted accounting principles ("GAAP") to such amounts before giving effect to the debt extinguishment charges, the restructuring charges related to consolidation of U.S. distribution facilities and the accelerated accretion on the converted Series D Convertible Preferred Stock ("Preferred Stock"). This disclosure is being provided because we believe it is meaningful to our investors and other interested parties to understand the Company's operating performance on a consistent basis without regard to debt extinguishment and restructuring charges and the anti-dilutive effects of the timing of the accretion charges on the Preferred Stock. The presentation of the non-GAAP information titled "Net income per share as adjusted, before giving effect to the converted Preferred Stock, and debt extinguishment and restructuring charges, net of taxes" or " Net income per diluted share as adjusted, before giving effect to the converted Preferred Stock, and debt extinguishment and restructuring charges, net of taxes" is not meant to be considered in isolation or as a substitute for net income or diluted income per share prepared in accordance with GAAP.

			Three Months Ended					Nine Months Ended
			March 31,		April 3,			March 31,		April 3,
			2005		2004			2005		2004
As reported:
Basic
	Net income (loss) attributable to common shareholders as   reported		$	5,619	$	(11,132	)	$	42,128	$	(8,894	)
	Weighted average shares outstanding as reported			27,788		24,202			27,582		21,584
		Net income (loss) per basic share as reported	$	0.20	$	(0.46	)	$	1.53	$	(0.41	)
Diluted
	Net income (loss) as reported		$	5,619	$	(11,132	)	$	42,128	$	(8,894	)
	Weighted average basic shares outstanding as reported			27,888		24,202			27,582		21,584
	Potential common shares - treasury method			2,276		--			2,308		--
	Weighted average shares and potential dilutive shares as   reported			30,164		24,202			29,890		21,584
		Net income (loss) per diluted share as reported	$	0.19	$	(0.46	)	$	1.41	$	(0.41	)
Adjusted before giving effect to the converted Preferred Stock   and debt extinguishment and restructuring charges, net of   taxes
Basic
	Net income (loss) attributable to common shareholders as   reported		$	5,619	$	(11,132	)	$	42,128	$	(8,894	)
	Accelerated accretion on the converted Preferred Stock			--		--			--		18,584
	Debt extinguishment charges, net of taxes			--		16,239			--		21,807
	Restructuring charges, net of taxes			--		854			--		1,823
		Net income attributable to common shareholders as   adjusted, before giving effect to the converted Preferred   Stock, and debt extinguishment and restructuring charges,   net of taxes	$	5,619	$	5,962		$	42,128	$	33,320
	Weighted average shares outstanding as reported			27,888		24,202			27,582		21,584
		Net income per share as adjusted, before giving effect to   the converted Preferred Stock, and debt extinguishment   and restructuring charges, net of taxes	$	0.20	$	0.25		$	1.53	$	1.54
Diluted
	Net income (loss) attributable to common shareholders as   reported		$	5,619	$	(11,132	)	$	42,128	$	(8,894	)
	Accretion and dividend on the Preferred Stock			--		593			--		2,291
	Accelerated accretion on the Preferred Stock converted   during the Period			--		--			--		18,584
	Debt extinguishment charges, net of taxes			--		16,239			--		21,807
	Restructuring charges, net of taxes			--		854			--		1,823
		Net income as adjusted, before giving effect to the   converted Preferred Stock, and debt extinguishment and   restructuring charges, net of taxes	$	5,619	$	6,554		$	42,128	$	35,611
	Weighted average shares and potential dilutive shares as   adjusted			30,164		28,890			29,890		27,027
	Net income per diluted share as adjusted, before giving   effect to the converted Preferred Stock, and debt   extinguishment and restructuring charges, net of taxes		$	0.19	$	0.23		$	1.41	$	1.32

ELIZABETH ARDEN, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

		March 31, 2005		June 30, 2004		April 3, 2004
Cash	$	25,966	$	23,494	$	17,250
Accounts Receivable, Net		175,889		102,306		112,428
Inventories		260,640		258,638		223,255
Property and Equipment, Net		39,469		37,198		37,031
Exclusive Brand Licenses, Trademarks and Intangibles, Net		188,459		191,842		193,570
Total Assets		724,438		663,686		633,528
Short-Term Debt		67,700		65,900		66,330
Current Liabilities		228,072		225,203		185,881
Long-Term Liabilities		236,196		236,423		246,032
Total Debt		301,502		304,466		307,098
Preferred Stock		--		--		11,206
Shareholders' Equity		260,170		202,060		190,408
Working Capital		254,459		191,872		204,715

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