(Adds details, share movement)
June 24 Cosmetics company Elizabeth Arden Inc
said it would exit low-return businesses and brands to
improve gross margins and profitability, disappointing investors
who had hoped for a sale of the company.
Shares of the company, known for its namesake perfume brand
and skin care brands such as Ceramide and Prevage, fell as much
as 7 percent at $26.30 in early trading on Tuesday.
The company said in May it was exploring strategic
alternatives after reporting much weaker-than-expected quarterly
results due to falling demand for its perfumes.
South Korea's LG Household & Healthcare Ltd said in April it
was considering a bid for Elizabeth Arden, which had a market
value of $841 million at the close of trading on Monday.
Elizabeth Arden said on Tuesday it would record a non-cash
charge of $85-95 million for the fourth quarter ending June 30
related to the restructuring.
The company, which also sells celebrity fragrances Justin
Bieber and Taylor Swift, said it would also cut jobs and close
its Puerto Rico business.
The measures are expected to result in savings of $27
million-$35 million in 2014, Elizabeth Arden said.
The company, named after its owner who founded it in 1910,
sells its products to retailers such as Wal-Mart Stores Inc
, Target Corp and Macy's Inc.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by