Elizabeth Arden’s fourth quarter sales down 28.4%
In the fourth quarter, Elizabeth Arden‘s sales fell 28.4% from last year to $191.7 million. Expectations were for revenue to come in at $241.64 million, which would have been a decline of just less than 10%. Elizabeth Arden confirmed sales were slower than expected because of a steeper than anticipated decline in the sale of its Justin Bieber and Taylor Swift fragrances.
Elizabeth Arden Inc.’s shares sank 24 % in afternoon trading Tuesday and touched a 4-year low. Elizabeth Arden’s other celebrity fragrances contain Britney Spears, Jennifer Aniston, Mariah Carey and Nicki Minaj.
ElisZbeth Arden Inc also said Tuesday that private equity firm Rhône Capital LLC has agreed to purchase $50 million of the company’s preferred stock and will receive warrants to purchase 2.5 million common shares at $20.39 each, which would represent about 7.6% of the company’s shares outstanding. Rhône Capital also intends to increase its ownership over time, Elizabeth Arden said. Rhône, however, has agreed not to acquire more than 30% of its common stock.