Elizabeth Arden implements restructuring plans
Elisabeth Arden has recently confirmed its board approved a cost-cutting effort that includes plans to exit some unprofitable businesses and fragrance license agreements.
The restructuring effort will include the discontinuation of some products, workforce reductions and the closing of its Puerto Rico affiliate, the beauty-products company said in a filing with the U.S. Securities and Exchange Commission.
The company also said Kathy Widmer has resigned as chief marketing officer but will stay on with the company through Aug. 28.
Elizabeth Arden in May said its board was exploring strategic options, as the company reported a wider fiscal third-quarter loss. Earlier this year, the company tempered expectations for the fiscal year because of declining sales and deep discounting.
The streamlining move is part of a broader turnaround effort in which Elizabeth Arden is aiming to reduce costs by $40 million to $50 million a year. The company also expects the plan to result in annual cost savings of roughly $27 million to $35 million.
The company also is projecting a three-year cumulative loss position for fiscal years 2012 through 2014, which ends June 30