Elizabeth Arden
[Company Red Door Logo]
** FOR IMMEDIATE RELEASE **
ELIZABETH ARDEN, INC. COMMENTS ON FIRST QUARTER RESULTS
~ Company's First Quarter Results to Reflect Impact of
SARS and Other Factors ~
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New York, New York (May 19, 2003) Elizabeth Arden, Inc. (NASDAQ:
RDEN), a leading global prestige fragrance and beauty products company, today
commented on its financial results for the first quarter of fiscal 2004 ended
April 26, 2003.
As previously indicated in March, the Company had expected a soft first
quarter due to a generally sluggish retail environment in the U.S. However,
the uncertain economic conditions associated with the conflict in Iraq, the
SARS (Severe Acute Respiratory Syndrome) epidemic and depressed air travel
adversely affected the Company's business, in particular its higher margin
travel retail business and certain international markets, namely Asia and
Canada. This resulted in an unanticipated impact on the Company's financial
results, particularly in the latter part of the quarter. Based on these
factors, the Company expects to report net sales for the first quarter ended
April 26, 2003 of approximately $133 million to $135 million and a net loss
attributable to common shareholders between $.92 and $.94 per fully diluted
share.
The Company's initial guidance for fiscal 2004 assumed some degree of
economic uncertainty and caution due to the challenging retail environment in
the U.S. Based on the Company's new product and marketing programs for the
rest of the year, the anticipated volume with the Company's mass retail
customers, and the relative significance of the seasonally slow first quarter
to the full year results, the Company still expects to achieve its previously
provided net sales and EPS guidance for the full fiscal year of a 5%-7%
increase in net sales and a 20% -25% increase in EPS over the prior fiscal
year. However, if the SARS epidemic and the softness experienced with U.S.
retailers continue to create an adverse retail environment for the remainder
of the year, the Company's results are likely to be negatively impacted.
As previously announced, the Company will report final first quarter
results on Wednesday, May 28, 2003. A conference call discussing the results
will be broadcast live over the Internet at 10:00 a.m. (Eastern Time) and can
be accessed by visiting http://www.elizabetharden.com. 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 http://www.elizabetharden.com
until June 11, 2003.
Elizabeth Arden is a leading global prestige fragrance and beauty
products company. The Company's portfolio of leading brands includes the
fragrance brands Red Door, Elizabeth Arden green tea, 5th Avenue, ardenbeauty,
Elizabeth Taylor's White Diamonds, Passion and Forever Elizabeth, White
Shoulders, Geoffrey Beene's Grey Flannel, Halston, Halston Z-14, Unbound, PS
Fine Cologne for Men, Design and Wings; the Elizabeth Arden skin care line,
including Ceramides and Eight Hour Cream; and the Elizabeth Arden cosmetics
line.
Company Contact: Marcey Becker, Senior Vice President, Finance
(203) 462-5809
Investor Contact: Cara O'Brien/Athan Dounis
FD Morgen-Walke Associates
(212) 850-5600
Press Contact: Laura Novak
FD Morgen-Walke Associates
(212) 850-5600
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 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") are not
historical facts and 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 key factors that have a direct bearing on our results of operations:
our substantial indebtedness and debt service obligations; our ability to
successfully and cost-effectively integrate acquired businesses or new brands;
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; our customers' financial condition; our ability to access capital
for acquisitions; the assumptions underlying our critical accounting
estimates; the retention and availability of key personnel; changes in the
retail, fragrance and cosmetic industries; our ability to launch new products
and implement our growth strategy; the impact of competitive products and
pricing; changes in product mix to less profitable products; risks of
international operations, including foreign currency fluctuations; economic
and political consequences of terrorist attacks and political instability in
certain regions of the world, including a possible war in Iraq; diseases
affecting customer purchasing patterns including severe acute respiratory
syndrome (SARS), delays in shipments, inventory shortages and higher costs of
production due to interruption of operations at key manufacturing or
fulfillment facilities that, after consolidations of manufacturing and
fulfillment locations, manufacture or provide logistic services for the
majority of our supply of certain products; 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; legal and
regulatory proceedings that affect, or will affect, our business; 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 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.