Leading global beauty products company, Elizabeth Arden Inc announced financial results for the third fiscal quarter ended March 31, 2006.
In line with prior guidance, net income for the third fiscal quarter ended March 31, 2006, was $1.3 million, or $0.04 per diluted share, excluding the pre-tax debt extinguishment charge of $0.8 million, or $0.02 per diluted share, associated with the early retirement of the remaining 11 ¾ percent Senior Notes due 2011.
Net income was $2.3 million or $0.08 per diluted share, before the debt extinguishment charge and the $1.5 million pre-tax charge associated with the adoption of FAS 123R, "Share-Based Payment."
This compares to $5.6 million or $0.19 per diluted share in the third quarter of fiscal 2005. On a reported basis, net income was $0.7 million, or $0.02 per diluted share.
Net sales of $191.3 million for the third fiscal quarter were slightly below prior guidance of $195 million to $200 million and decreased 3.5 percent as compared to net sales of $198.3 million in the prior year period. Excluding the impact of foreign currency translation, net sales declined 1.5 percent.
Net sales in the current period were affected by tightening of inventories, primarily at US retailers, which resulted in replenishment orders not being consistent with sell-through and in higher than expected returns and sales promotions.
These factors also affected the Company's gross margins and operating income and were partially offset by a lower tax rate due to higher forecasted earnings contribution from international affiliates.
marketing@alchempro.com
