Elizabeth Arden reported financial results for its second fiscal quarter, which ended on December 31, 2012. Net sales were $467.9 million, an increase of 8.8% as compared to the second quarter of the prior fiscal year.
Excluding the unfavorable impact of foreign currency translation, net sales increased by 9.1%.
On a reported basis, net income per diluted share for the current year period was $1.47. On an adjusted basis, net income per diluted share for the quarter ended December 31, 2012 was $1.58, as compared to net income per diluted share of $1.42 for the prior year period.
In North America, net sales increased 8.4% for the quarter and 13% fiscal year-to-date. The Company's fragrance portfolio continued to add market share, with both prestige and mass retailers gaining 2.15% and 2.1%, respectively.
Sales growth was driven by the recently acquired brands, new launches, including Justin Bieber's Girlfriend, Pink Friday Nicki Minaj and Taylor Swift Wonderstruck Enchanted, which all ranked among the top fragrance launches in U.S. prestige department stores for the holiday season, and growth in existing pillar fragrance brands.
Performance at prestige retailers was strong with a number of the Company's key existing brands as well, with the largest retail sales increases posted by the Juicy Couture, John Varvatos and Curve fragrances.
E. Scott Beattie, chairman, president and chief executive officer of Elizabeth Arden, Inc., commented, "Second quarter sales and earnings were up solidly from the prior year, with strong retail sales performance within our North America and International businesses. Nonetheless, our net sales results were below original guidance due to lower than forecasted sales in department stores as well as softer than anticipated holiday sales at one of our major mass retail accounts. Despite strong sales growth among many of our global affiliates, international net sales were impacted by lower than expected inventory replenishment in our travel retail business and weakness in Greater China."
Beattie continued, "Over the course of the past few months, we successfully completed the conversion of our Elizabeth Arden flagship doors and are very excited with the momentum of sales increases."