Commenting on the results, E. Scott Beattie, Chairman and Chief Executive Officer, stated, "While we experienced weakness in the US market as a result of the Federated and May department store merger and certain mass retailers' inventory control initiatives, our business overall performed in line with expectations.
Fantasy Britney Spears rolled out to the remainder of our international markets in the third quarter and contributed solidly to our net sales, and PREVAGE continues to be introduced in markets around the world to an enthusiastic reception."
For the nine-months ended March 31, 2006, net sales increased 4.3 percent to $764.6 million from $733.4 million from the nine months ended March 31, 2005. Net income was $38.3 million versus $42.1 million for the year-ago period and earnings per share were $1.29, as compared to $1.41 in the prior year period, excluding the debt extinguishment charge and the impact of FAS 123R. On a reported basis, net income was $34.7 million and earnings per share were $1.17.
Mr. Beattie continued, "As we look ahead, we expect the growth and profitability initiatives implemented during this fiscal year, particularly the organizational improvements in Europe and Asia, primarily in China, to contribute to both revenues and earnings next year. In addition, we expect the licensing agreements for new fragrance launches and improved balance between shipments and retail sales to provide positive momentum as we head into fiscal 2007."
marketing@alchempro.com
