Elizabeth Arden (RDEN) 8-K Elizabeth Arden, Inc. Announces Third Quarter Results for Fiscal 2007

FOR IMMEDIATE RELEASE

ELIZABETH ARDEN, INC. ANNOUNCES THIRD QUARTER
RESULTS FOR FISCAL 2007

~ Net Sales Increase of 14.6% ~
~ Fully Diluted EPS of $0.11 ~

          New York, New York (May 3, 2007) -- Elizabeth Arden, Inc. (NASDAQ: RDEN), a global prestige beauty products company, today announced financial results for the fiscal 2007 third quarter ended March 31, 2007.

THIRD QUARTER RESULTS

          Net sales increased 14.6% to $219.2 million for the three months ended March 31, 2007 from $191.3 million in the comparable period of the prior year. Net sales growth was driven by increased sales of prestige fragrances to mass retail customers, sales of new fragrances, includingElizabeth Arden Mediterranean andwith Love...Hilary Duff, and higher sales globally of the Elizabeth Arden brand. Excluding the favorable impact of foreign currency translation, net sales increased 12.6%.

          Net income for the three months ended March 31, 2007 was $3.2 million, or $0.11 per diluted share, compared to net income of $0.7 million, or $0.02 per diluted share, in the same period last year. Earnings for the current year period were positively impacted by a tax benefit of $0.01 per diluted share related to R&D tax credits. Earnings for the prior year period include debt extinguishment charges of $0.02 per diluted share.

          E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc., commented, "The key drivers of our business performed well this quarter, and we expect this trend to continue for the remainder of this fiscal year and into fiscal 2008. Our U.S. mass retail business delivered another strong quarter. Net sales of the mass business unit grew by 26%, well ahead of the category growth, and we are expanding our market share with those retailers. The second key driver, our international business, increased over 10% led by strong growth in the Asia Pacific and travel retail markets. Global sales of Elizabeth Arden branded skin care and color products are growing rapidly and have experienced double-digit increases so far this fiscal year. We expect growth of the Elizabeth Arden brand in total to continue to accelerate due to the recent launch of our new fragranceElizabeth Arden Mediterranean."

          Mr. Beattie continued, "During the third quarter we also integrated the remaining functions related to the acquisition of Sovereign Sales. With the transition costs essentially behind us, we expect the acquisition, along with a strong pipeline of new fragrance brands for the U.S. mass retail market, to contribute to improved operating earnings and earnings growth for the balance of this fiscal year and fiscal 2008."

NINE MONTHS RESULTS

          For the nine months ended March 31, 2007, net sales rose 15.7% to $884.8 million from $764.6 million for the nine months ended March 31, 2006. Excluding the favorable impact of foreign currency translation, net sales increased 14.5%. Net income was $27.7 million, or $0.97 per diluted share, versus $34.7 million, or $1.17 per diluted share, for the year-ago period. The results for the nine months ended March 31, 2007 include restructuring charges of $0.05 per diluted share related to the Company 's previously announced restructuring, and results for the prior nine-month period include debt extinguishment charges of $0.02 per diluted share.

OUTLOOK

          The Company confirms its fiscal 2007 net sales and earnings guidance and expects diluted earnings per share in the range of $1.15 to $1.20 and net sales to increase by 15% to 18% over prior fiscal year net sales of $954.6 million. The Company notes that it utilizes foreign currency hedges and that its net sales guidance is based on current foreign currency rates. The earnings guidance reflects no change to the full fiscal year anticipated effective tax rate of 25.6%. The earnings guidance also excludes restructuring charges.

CONFERENCE CALL INFORMATION

          The Company will host a conference call today at 4:30 p.m. Eastern 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 at http://www.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 June 3, 2007.

Elizabeth Arden is a global prestige beauty products company. The Company's portfolio of brands includes theElizabeth Arden fragrance brands: Red Door, Elizabeth Arden 5^th Avenue, Elizabeth Arden green tea and Elizabeth Arden Mediterranean; theElizabeth Taylor fragrance brands: White Diamonds and Elizabeth Taylor's Passion; the fragrance brands ofBritney Spears: curious Britney Spears and fantasy Britney Spears; theHilary Duff fragrance with Love...Hilary Duff; theDanielle Steel fragrance Danielle by Danielle Steel; the classic fragrances:Design, Giorgio Beverly Hills, Halston andHalston Z-14, White ShouldersandWings; the men's fragrances:Daytona 500, GANT,Geoffrey Beene'sGrey Flannel,theHUMMER™ Fragrance for Men andPS Fine Cologne for Men; and the designer fragrance brands ofAlfred Sung, Badgley Mischkaand Bob Mackie; theElizabeth Arden skin care l ines, including Ceramide, Intervene andPREVAGE™ anti-aging treatment and the Elizabeth Arden color cosmetics line.

Company Contact:	Marcey Becker, Senior Vice President, Finance
	(203) 462-5809
Investor/Press Contact:	Allison Malkin/Michael Fox
	Integrated Corporate Relations
	(203) 682-8200

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, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "estimated," "intends," "plans," "believes" and "projects") 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. These statements include, but are not limited to, our guidance regarding net sales, earnings and cash flow from operations. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key 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 or our customers' operations;
*	the impact of competitive products andpricing;
*	risks of international operations, including foreign currency fluctuations, economic and political consequences of terrorist attacks, and political instability in certain regions of the world;
*	unexpected factors affecting customer or consumer preferences and/or purchasing patterns;
*	the quality, safety and efficacy of our products;
*	our ability to successfully launch new products and implement our growth strategy;
*	the success, or changes in the timing or scope, of new product launches, advertising and merchandising programs;
*	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 the 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 our supply of certain products;
*	the loss of or disruption in our distribution facilities;
*	changes in the retail, fragrance and cosmetic industries, including the consolidation of retailers and the associated closing of retail doors as well as retailer inventory control practices;
*	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 unanticipated 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 statements. 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,			March 31,				March 31,				March 31,
			2007			2006				2007				2006
Net Sales		$	219,223		$	191,344			$	884,802			$	764,615
Cost of Sales			120,744			105,094				529,143				443,539
Gross Profit			98,479			86,250				355,659				321,076
Gross Profit Percentage			44.9	%		45.1	%			40.2	%			42.0	%
Selling, General and Administrative Expenses			82,090			75,929				277,696				238,424
Depreciation and Amortization			6,042			5,438				18,740				16,087
Total Operating Expenses			88,132			81,367				296,436				254,511
Interest Expense, Net			6,552			5,344				22,441				18,120
Debt Extinguishment Charge			--			758				--				758
Income Before Income Taxes			3,795			(1,219	)			36,782				47,687
Provision for (Benefit From) Income Taxes			638			(1,921	)			9,083				12,995
Net Income		$	3,157		$	702		$		27,699		$		34,692
As reported:
	Basic Income Per Share	$	0.11		$	0.02		$		1.00		$		1.22
	Diluted Income Per Share	$	0.11		$	0.02		$		0.97		$		1.17
	Basic Shares		27,455			28,412				27,566				28,487
	Diluted Shares		28,754			29,636				28,581				29,633
	EBITDA (a)	$	16,389		$	9,563		$		77,963		$		81,894
Adjusted to exclude the effect of debt   extinguishment and restructuring   charges, net of taxes (b):
	Net Income	$	3,271		$	1,254		$		29,058		$		35,244
	Basic Income Per Share	$	0.12		$	0.04		$		1.05		$		1.24
	Diluted Income Per Share	$	0.11		$	0.04		$		1.02		$		1.19
	Basic Shares		27,455			28,412				27,566				28,487
	Diluted Shares		28,754			29,636				28,581				29,633
EBITDA (a)		$	16,526		$	10,321		$		79,768		$		82,652

(a)    EBITDA is defined as net income plus the provision for income taxes, plus interest expense, plus depreciation and amortization. EBITDA should not be considered as an alternative to operating income or net income (as determined in accordance with generally accepted accounting principles (GAAP)) as a measure of our operating performance or to net cash provided by operating, investing and financing activities (as determined in accordance with GAAP) or 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 capital structure, we believe EBITDA is a relevant measure. This informat ion 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, as determined in accordance with GAAP, to EBITDA: (For a reconciliation of net income to EBITDA for prior periods, see the Company's filings with the Securities and Exchange Commission which can be found on the Company's website at www.elizabetharden.com).

		Three Months Ended					Nine Months Ended
(In thousands)		March 31,		March 31,			March 31,		March 31,
		2007		2006			2007		2006
Net income		$	3,157	$	702		$	27,699	$	34,692
Plus:
	Provision for (benefit from) income taxes		638		(1,921	)		9,083		12,995
	Interest expense, net		6,552		5,344			22,441		18,120
	Depreciation and amortization		6,042		5,438			18,740		16,087
EBITDA			16,389		9,563			77,963		81,894
Debt extinguishment charge			--		758			--		758
Restructuring charges			137		--			1,805		--
EBITDA adjusted to exclude debt   extinguishment and restructuring charges		$	16,526	$	10,321		$	79,768	$	82,652

(b)   The following table reconciles the calculation of net income per share on a basic and diluted basis from the amounts reported in accordance with GAAP to such amounts before giving effect to the impact of debt extinguishment and restructuring charges. 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 for comparability purposes and on a consistent basis without regard to the impact of debt extinguishment and restructuring charges. The presentation of the non-GAAP information titled "Net income per share as adjusted, before the effect of debt extinguishment and restructuring charges, net of taxes" is not meant to be considered in isolation or as a substitute for net income or net income per share prepared in accordance with GAAP.

(In thousands, except per share data)			Three Months Ended				Nine Months Ended
			March 31,		March 31,		March 31,		March 31,
			2007		2006		2007		2006
As reported:
Basic
	Net income as reported		$	3,157	$	702	$	27,699	$	34,692
	Weighted average shares outstanding as reported			27,455		28,412		27,566		28,487
		Net income per basic share as reported	$	0.11	$	0.02	$	1.00	$	1.22
Diluted
	Net income as reported		$	3,157	$	702	$	27,699	$	34,692
	Weighted average shares and potential dilutive   shares as reported			28,754		29,636		28,581		29,633
		Net income per diluted share as reported	$	0.11	$	0.02	$	0.97	$	1.17
Adjusted to exclude the effect of debt extinguishment   and restructuring charges, net of taxes
Basic
	Net income as reported		$	3,157	$	702	$	27,699	$	34,692
	Debt extinguishment charge, net of tax			--		552		--		552
	Restructuring charges, net of tax			114		--		1,359		--
		Net income as adjusted, before the effect of   debt extinguishment and restructuring   charges, net of taxes	$	3,271	$	1,254	$	29,058	$	35,244
	Weighted average shares outstanding as reported			27,455		28,412		27,566		28,487
		Net income per share as adjusted, before the   effect of debt extinguishment and   restructuring charges, net of taxes	$	0.12	$	0.04	$	1.05	$	1.24
Diluted
	Net income as reported		$	3,157	$	702	$	27,699	$	34,692
	Debt extinguishment charge, net of tax			--		552		--		552
	Restructuring charges, net of tax			114		--		1,359		--
		Net income as adjusted, before the effect of   debt extinguishment and restructuring   charges, net of taxes	$	3,271	$	1,254	$	29,058	$	35,244
	Weighted average shares outstanding as reported			28,754		29,636		28,581		29,633
		Net income per diluted share as adjusted, before   the effect of debt extinguishment and   restructuring charges,  net of taxes	$	0.11	$	0.04	$	1.02	$	1.19

CONSOLIDATED BALANCE SHEET DATA

(Unaudited)

(In thousands)

		March 31, 2007	June 30, 2006			March 31, 2006
Cash	$	37,761	$	28,466	$	27,309
Accounts Receivable, Net		213,484		181,080		187,953
Inventories		327,184		269,270		239,628
Property and Equipment, Net		38,662		34,681		32,926
Exclusive Brand Licenses, Trademarks and Intangibles, Net		219,084		201,534		184,717
Total Assets		878,566		759,903		714,491
Short-Term Debt		114,840		40,000		30,296
Current Portion of Long-Term Debt		1,125		563		--
Current Liabilities		323,278		234,978		183,317
Long-Term Liabilities		248,425		247,078		233,943
Total Debt		340,433		265,951		252,801
Shareholders' Equity		306,863		277,848		297,230
Working Capital		290,732		280,942		305,491