Elizabeth Arden, Inc. (NASDAQ:RDEN) Celebrity Perfume Sales Fall

Elizabeth Arden, Inc. (NASDAQ:RDEN) recently posted its quarterly reports. The company saw a huge loss, more than what it had expected, due to a decline in the sales segment of celebrity perfumes. The celebrity perfumes sector of the company reported not-so-great numbers, especially the Taylor Swift and Justin Bieber brands.

The quarterly sales of Elizabeth Arden, Inc. (NASDAQ:RDEN) declined by 28.4 percent – the steepest decline that it has ever seen in its years long history. The company expects the sales to remain low for the next 2 quarters as well. The shares of the company plunged by 20 percent when the news of its quarterly loss hit the market.

The company does not only sell celebrity perfumes but it sells cosmetics as well. Elizabeth Arden, Inc. (NASDAQ:RDEN) said that the sales from other brands, namely the Britney Spears and Elizabeth Taylor products, also decreased during the recent quarter due to a reduction in the number of shipments made by the company.

Elizabeth Arden, Inc. (NASDAQ:RDEN) launched its restricting plan in June in order to boost up the sales in the celebrity fragrance sector. The company disclosed on August 19, 2014, that Rhone Capital LLC has agreed to buy 2.5 million of the company’s shares, which make around 7.6 percent of the company’s outstanding stocks. Rhone Capital LLC also agreed to buy $50 million worth of redeemable shares in order to provide the company with some funding for its restructuring plan.

According to the news, the finance firm will have one member in the board of directors of Elizabeth Arden, Inc. (NASDAQ:RDEN). Moreover, the firm will also capitalize around 30 percent of the Elizabeth Arden stocks once the warrants given to Rhone have been exercised.

Elizabeth Arden, Inc. (NASDAQ:RDEN) also deals in the skin care brands, including Prevage and Ceramide. The company announced in June that it will get rid of the low return products and brands.

Sources have it that LG Household and Health Care Ltd, a South Korean Skin care company, was planning on acquiring Elizabeth Arden, Inc. (NASDAQ:RDEN). However, the company backed away when Elizabeth Arden announced that it would not include low returns skin care brands in its portfolio.

The net sales of the company dropped down to $191.7 million during the fourth quarter of its fiscal year 2014. It is important to note here that the company reported total sales of $267.6 million for the same quarter a year back. Moreover, the net loss of the company expanded from $5 million to $155.9 million over a period of one year. The company’s EPS has come down to -$5.24. After adjustments, the EPS is recorded to be at -$1.04.

Coming to the stock prices of Elizabeth Arden, Inc. (NASDAQ:RDEN), the company, on the last trading day, August 19, 2014, started its stocks at a price of $14.90 and closed at a price of $15.05, after seeing the lowest intraday figures of $14.65. The company has a market capitalization of $582.56 million with a price to earnings ratio of 95.77.