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Elizabeth Arden swings to Q1 loss, plans Southeast Asia entry


New York -– Non-recurring items, including charges relating to stock issuance and tax valuation, helped swing Elizabeth Arden Inc. to a net loss of $25.5 million in the first quarter of fiscal 2015, compared to net income of $1.59 million in the same period a year earlier. Declining North American fragrance sales helped reduce net sales 21% to $270.38 million from $343.6 million.

Elizabeth Arden expects net sales to increase in the second half of fiscal 2015. The company also expects to launch a joint venture in Southeast Asia during the current fiscal year.

“Our first quarter results were in-line with our expectations, with sales and earnings declines that we expected and forecasted,” said E. Scott Beattie, chairman, president and CEO. “As we previously stated, fiscal 2015 is a rebuilding year, and during the quarter we continued to advance the key elements of our turnaround plans. We recently established a joint venture with the Chalhoub Group in the Middle East to accelerate growth in that region and expect to establish an additional joint venture for Southeast Asia in 2015.”

M. Steven Langman and Franz-Ferdinand Buerstedde, co-founder and managing director, and managing director of Rhône Group L.L.C., respectively, have been elected to the Elizabeth Arden board of directors effective Oct. 28, 2014. Langman also will serve as the company’s lead independent director effective Dec. 1, 2014, and has joined the Compensation and Nominating and Corporate Governance Committees of the board. The company also announced that J. W. Nevil Thomas will retire as a member of the board as of the 2014 Annual Shareholder Meeting.
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