Boston, MA 08/20/2014 (wallstreetpr) – Elizabeth Arden, Inc. (NASDAQ:RDEN) was one of the big losers on Tuesday trading session as its stock plummeted by highs of 23.35% to close the day at a low of $15.05. The drop in the market came as the company reported its biggest loss in history, attributed to a decline in sales of celebrity fragrance particularly Bieber’s and Taylor Swift’s. The drop in sales for the quarter came as retailers ordered fewer products, consequently dragging shipments to below normal retail sales.
Pricing Control Measures
A drop in sales for the quarter also came as one of the company’s manufacturer tightened distribution levels as one of the ways of improving pricing globally as well as gross margins. Jason Gere, an analyst at KeyBanc Capital Market expects sales to continue declining, news that won’t go well with the company’s shareholders.
For the three months ended June 30, Elizabeth Arden, Inc. (NASDAQ:RDEN) posted a wider than expected loss of $155.9 million or $5.24 a share. Full-year loss came in at $145.7 million or $4.90 a share an underperformance compared to a profit of $40.7 million reported in 2013. Sales for the year also dropped by 18.4% coming in at $1.2 billion.
Concerns over Guidance
Elizabeth Arden, Inc. (NASDAQ:RDEN) has already initiated a restructuring program as it seeks to streamline its operations amidst the looming sales declines. Excluding the costs associated with restructuring, the company lost 55 cents for the year. The decline in Tuesday trading session came as the company posted a below par guidance that continues to raise concerns.
Elizabeth Arden, Inc. (NASDAQ:RDEN) has stated that fiscal 2015 will mostly be dedicated to stabilizing the business as the company tries to plan on rebuilding its profitability levels again. The company expects sales headwinds to continue in the first quarter of Fiscal 2015 as a result of challenges experienced in the previous quarters. Elizabeth Arden expects net sales to start improving in the second half of fiscal 2015.
