Elizabeth Arden (RDEN) 8-K Results of Operations and Financial Condition

FOR IMMEDIATE RELEASE

ELIZABETH ARDEN, INC. ANNOUNCES FIRST QUARTER
FISCAL 2008 RESULTS
~ Net Sales Increase 7%;
~ Diluted EPS of $0.04 (Excluding Charges); Reported Diluted EPS of $0.01 ~

          New York, New York (November 2, 2007) -- Elizabeth Arden, Inc. (NASDAQ: RDEN), a global prestige beauty products company, today announced financial results for the first quarter ended September 30, 2007.

FIRST QUARTER RESULTS

          Net sales increased 6.7% to $271.8 million for the three months ended September 30, 2007, from $254.8 million in the comparable period of the prior year. Net sales growth was driven by the global launch of theM by Mariah Carey fragrance, increased sales of prestige fragrances to U.S. mass retail customers and increased sales of Elizabeth Arden branded products in international markets. Excluding the favorable impact of foreign currency translation, net sales increased 4.0%.

          Net income for the three months ended September 30, 2007 was $1.1 million, or $0.04 per diluted share, excluding charges primarily related to restructuring activities in the Company's European operations. This compares to a net loss in the same period last year of $0.4 million, or $0.02 per diluted share, excluding charges. On a reported basis, net earnings for the first quarter of fiscal 2008 were $0.01 per diluted share, compared to a net loss for the prior year period of $0.05 per diluted share.

          E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc., commented, "We are pleased with our first quarter results, which were led largely by the strength of our international business. Net sales of our international business grew by 18% this quarter and 12% in constant currencies. Specifically, revenues in China and in emerging markets increased by 75% and 40%, respectively. We also delivered 15% sales growth and significant improvement in profitability in our European operations. These results were in part due to the strong performance of the Elizabeth Arden brand in international markets. With nearly 65% of the total sales of Elizabeth Arden-branded products sold internationally, we expect the positive momentum behind the brand to continue due to strong global economic growth."

          "In North America, our U.S. mass business was up 14%, on top of strong comparable growth last year, and our U.S. Department Stores business declined by 25%, driven by the timing of launches and changes in the retail calendar. Much of this decrease is expected to be made up in the second quarter with the launch ofPREVAGE™ Night Cream and the performance of theM by Mariah Carey andBritney Spears believe fragrances. It is important to note that the results in the first quarter for our U.S. Department Stores business were essentially on plan."

OUTLOOK

          For the first half of fiscal 2008, the Company is confirming its diluted earnings per share guidance of $1.15 to $1.20 and now expects net sales to increase by 5% to 7%. The Company confirms its fiscal 2008 annual net sales and diluted earnings per share guidance. For fiscal 2008, the Company expects net sales to increase by 5% to 7% and diluted earnings per share to be in the range of $1.65 to $1.75. The earnings guidance is based on a full fiscal year anticipated effective tax rate of approximately 25%.

          The Company notes that it utilizes foreign currency hedges which are reflected in its results and guidance. The Company's guidance is based on a number of factors, including the anticipated success of its new product launches, the introduction of additional fragrance brands to its mass retail customers as planned and expected improvement in operating performance, and excludes any restructuring charges.

CONFERENCE CALL INFORMATION

          The Company will host a conference call today at 9:30 a.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 November 17, 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, fantasy Britney Spears and Britney Spears believe; theMariah Carey fragrance M by Mariah Carey; theHilary Duff fragrance with Love...Hilary Duff; theDanielle Steel fragrance Danielle by Danielle Steel; the lifestyle fragrances:Daytona 500, Design, Giorgio Beverly Hills,theHUMMER™ Fragrance for Men, PS Fine Cologne for Men,White Shouldersand Wings; and the designer fragrance brands ofAlfred Sung, Badgley Mischka, Bob Mackie, GANT,Geoffrey Beene'sGrey Flannel, Halston andHalston Z-14,and Nanette Lepore; theElizabeth Arden skin care lines, 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

ELIZABETH ARDEN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS DATA

(Unaudited)

(In thousands, except percentages and per share data)

		Three Months Ended
		September 30, 2007			September 30, 2006
Net Sales		$	271,789		$	254,808
Cost of Sales			165,408			155,583
Gross Profit			106,381			99,225
Gross Profit Percentage			39.1	%		38.9	%
Selling, General and Administrative Expenses			92,472			87,284
Depreciation and Amortization			5,954			6,347
Total Operating Expenses			98,426			93,631
Interest Expense, Net			7,488			7,360
Income (Loss) Before Income Taxes			467			(1,766	)
Provision for (Benefit From) Income Taxes			117			(453	)
Net Income (Loss)		$	350		$	(1,313	)
As reported:
	Basic Income (Loss) Per Share	$	0.01		$	(0.05	)
	Diluted Income (Loss) Per Share	$	0.01		$	(0.05	)
	Basic Shares		27,883			27,652
	Diluted Shares		29,390			27,652
	EBITDA (a)	$	13,909		$	11,941
Adjusted to exclude the effect of    restructuring charges, net of taxes (b):
	Net Income (Loss)	$	1,061		$	(421	)
	Basic Income (Loss) Per Share	$	0.04		$	(0.02	)
	Diluted Income (Loss) Per Share	$	0.04		$	(0.02	)
	Basic Shares		27,883			27,652
	Diluted Shares		29,390			27,652
EBITDA (a)		$	14,856		$	13,140

(a)    EBITDA is defined as net income (or net loss) plus the provision for (benefit from) 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 re levant 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 GAAP, to EBITDA: (For a reconciliation of net income (loss) 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
(In thousands)		September 30,		September 30,
		2007		2006
Net income (loss)		$	350	$	(1,313	)
Plus:
	Provision for (benefit from) income taxes	117		(453		)
	Interest expense, net	7,488		7,360
	Depreciation and amortization	5,954		6,347
EBITDA		13,909		11,941
Restructuring charges		947		1,199
EBITDA adjusted to exclude restructuring   charges		$	14,856	$	13,140

(b)   The following table reconciles the calculation of net income (loss) 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 restructuring charges. This disclosure is being provided for comparability purposes 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 the impact of restructuring charges. The presentation in the table below of the non-GAAP information titled "Net income (loss) per share adjusted to exclude the effect of restructuring charges, net of taxes" is not meant to be considered in isolation or as a substitute for net income (loss) or net income (loss) per share prepared in accordance with GAAP.

(In thousands, except per share data)			Three Months Ended
			September 30,		September 30,
			2007		2006
As reported:
Basic
	Net income (loss) as reported		$	350	$	(1,313	)
	Weighted average shares outstanding as reported			27,883		27,652
		Net income (loss) per basic share as reported	$	0.01	$	(0.05	)
Diluted
	Net income (loss) as reported		$	350	$	(1,313	)
	Weighted average shares and potential dilutive   shares as reported			29,390		27,652
		Net income (loss) per diluted share as reported	$	0.01	$	(0.05	)
Adjusted to exclude the effect of    restructuring charges, net of taxes:
Basic
	Net income (loss) as reported		$	350	$	(1,313	)
	Restructuring charges, net of tax			711		892
		Net income (loss) adjusted to exclude the effect of    restructuring charges, net of taxes	$	1,061	$	(421	)
	Weighted average shares outstanding as reported			27,883		27,652
		Net income (loss) per share adjusted to exclude    the effect of restructuring charges, net of taxes	$	0.04	$	(0.02	)
Diluted
	Net income (loss) as reported		$	350	$	(1,313	)
	Restructuring charges, net of tax			711		892
		Net income (loss) adjusted to exclude the effect of    restructuring charges, net of taxes	$	1,061	$	(421	)
	Weighted average shares outstanding as reported			29,390		27,652
		Net income (loss) per diluted share adjusted to    exclude the effect of restructuring charges, net    of taxes	$	0.04	$	(0.02	)

CONSOLIDATED BALANCE SHEET DATA

(Unaudited)

(In thousands)

	September 30, 2007		June 30, 2007		September 30, 2006
Cash	$	27,152	$	30,287	$	32,696
Accounts Receivable, Net		275,278		214,972		260,756
Inventories		450,071		380,232		385,681
Property and Equipment, Net		44,027		42,471		35,418
Exclusive Brand Licenses, Trademarks and Intangibles, Net		222,329		224,611		221,445
Total Assets		1,072,226		939,175		983,089
Short-Term Debt		223,000		97,640		224,800
Current Portion of Long-Term Debt		1,252		1,125		1,125
Current Liabilities		497,486		367,428		463,086
Long-Term Liabilities		255,781		250,820		247,281
Total Debt		448,384		323,295		450,810
Shareholders' Equity		318,959		320,927		272,723
Working Capital		302,077		298,165		255,619

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 and earnings. In ad dition, 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:

*	factors affecting our relationships with our customers or our customers' businesses, including the absence of contracts with customers, our customers' financial condition, and changes in the retail, fragrance and cosmetic industries, such as the consolidation of retailers and the associated closing of retail doors as well as retailer inventory control practices, including but not limited to levels of inventory carried at point of sale and practices used to control inventory shrinkage;
*	our reliance on third-party manufacturers for substantially all of our owned and licensed products and our absence of contracts with suppliers;
*	delays in shipments, inventory shortages and higher costs of production due to the loss of or disruption in our distribution facilities or at key third party manufacturing or fulfillment facilities that manufacture or provide logistic services for our products;
*	our ability to respond in a timely manner to changing consumer preferences and purchasing patterns and other international and domestic conditions and events that impact consumer confidence and demand;
*	our ability to protect our intellectual property rights;
*	the success, or changes in the timing or scope, of our new product launches, advertising and merchandising programs;
*	the quality, safety and efficacy of our products;
*	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;
*	our ability to implement our growth strategy and acquire or license additional brands or secure additional distribution arrangements, to successfully and cost-effectively integrate acquired businesses or new brands, and to finance our growth strategy and our working capital requirements;
*	our level of indebtedness, debt service obligations and restrictive covenants in our revolving credit facility and the indenture for our 7 3/4% senior subordinated notes;
*	changes in product mix to less profitable products;
*	the retention and availability of key personnel;
*	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 or critical accounting estimates; 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. This press release is qualified in its entirety by the cautionary sta tements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended June 30, 2007.