Jan 16 Beauty products maker Elizabeth Arden Inc
estimated quarterly results below analysts'
expectations, saying sales were hurt by its refusal to discount
deeply even as other retailers offered heavy promotions.
Shares of the company, which also withdrew its full-year
forecast, fell 21 percent in trading after the bell.
In 2013, U.S. retailers offered the biggest promotions since
the 2008 recession to get shoppers to spend in a shortened
"Our results were significantly impacted by an increased
level of highly promotional and discounted activity globally and
weaker than anticipated holiday retail sales and replenishment
orders at a number of our non-prestige retail accounts in North
America," Chief Executive E. Scott Beattie said in a statement.
He said the company made a strategic decision not to
"participate fully in the heavy promotional and discounted
The company, which sells celebrity fragrances and cosmetics
under the Elizabeth Arden brand, said it was withdrawing its
full-year forecast in light of its quarterly performance.
It said in October that it expected net sales growth to be
in the lower half of a 3-5 percent range for the year ending
Elizabeth Arden had also forecast full-year earnings in the
lower half of a range of $2.15-$2.30 per share.
The company said on Thursday that it expected adjusted
earnings of $1.05-$1.08 per share for the second quarter ended
Analysts on average were expecting a profit of $1.48 per
share, according to Thomson Reuters I/B/E/S.
The beauty products company estimated quarterly sales of
$415 million-$418 million, below the average analyst estimate of
Elizabeth Arden shares closed about 1 percent down at $34.50
on the New York Stock Exchange on Thursday.
(Reporting by Maria Ajit Thomas in Bangalore; Editing by Kirti