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Elizabeth Arden, Inc. Announces Third Quarter Fiscal 2012 Results
Net Sales of $239 Million; Increase of 3.5% 3rd Quarter EPS of $0.07; Year-to-Date EPS of $1.79

NEW YORK, NY, May 03, 2012 (MARKETWIRE via COMTEX) --Elizabeth Arden, Inc. (NASDAQ: RDEN), a global prestige beauty products company, today announced financial results for its third fiscal quarter ended March 31, 2012.

THIRD QUARTER RESULTS

For the quarter ended March 31, 2012, the Company reported net sales of $239.3 million, an increase of 3.5%, as compared to the third quarter of the prior fiscal year. Excluding the unfavorable impact of foreign currency translation, net sales increased by 3.9%.

Net income per diluted share for the quarter ended March 31, 2012, was $0.07, as compared to a net loss per diluted share of $0.12 for the prior year period. For the prior year period, net income per diluted share was $0.02, excluding debt extinguishment charges associated with the Company's debt refinancing completed in the third quarter of the prior fiscal year. A reconciliation between GAAP and adjusted results can be found in the tables and footnotes at the end of this press release.

Net sales for the Company's international segment in the current quarter increased by 6.3%, or by 7.1% at constant rates, over the prior year period, and net sales in the Company's North America segment grew by 1.7%. Gross margin in the current quarter increased by 50 basis points to 50%.

Mr. Beattie commented, "Overall results were in line with our expectations. In anticipation of the roll-out of the newly packaged and reformulated products associated with the Elizabeth Arden brand repositioning, there has been a reduced pipeline of innovation of Elizabeth Arden products this quarter. We continue to make considerable progress toward this initiative, which we believe will be transformational for our Company. We are on schedule to accomplish the rapid conversion of approximately 50 flagship customer doors by the end of September 2012, with a broader group of our customer doors to follow."

NINE MONTHS RESULTS

For the nine months ended March 31, 2012, the Company reported net sales of $972.7 million, an increase of 5.5%, as compared to the prior year period. Excluding the favorable impact of foreign currency translation, net sales increased by 4.5%. Net income per diluted share was $1.79, as compared to net income per diluted share of $1.24 for the nine months ended March 31, 2011. For the prior year period, net income per diluted share was $1.39, excluding debt extinguishment charges and expenses associated with the Company's Global Efficiency Re-engineering initiative.

OUTLOOK

For fiscal 2012, the Company now expects net sales growth of 5.0% to 5.5% over the prior fiscal year and net income per diluted share of $1.95 to $2.00. The Company still expects its gross margin to increase by 200 to 250 basis points over fiscal 2011.

For the fourth fiscal quarter, net sales are expected to range between $261 million and $267 million, or increase by 2.9% to 5.2%, including a negative impact from unfavorable foreign currency rates of 1.7% based on current rates.

The Company will introduce fiscal 2013 guidance in August 2012 when it reports its fourth quarter and fiscal 2012 financial results.

The guidance is based on April 2012 month end foreign currency rates. The Company also notes that continued global economic uncertainty may have a negative effect on retailer and consumer confidence and demand, and, along with the foreign currency volatility, makes forecasting difficult.

CONFERENCE CALL INFORMATION

The Company will host a conference call today at 10:00 a.m. Eastern Time. All interested parties can listen to a live web cast of the Company's conference call by visiting the Investor Relations section of the Corporate tab on the Company's web site at http://ir.elizabetharden.com. An online archive of the broadcast will be available within one hour of the completion of the call and will be accessible on the Company's web site until June 3, 2012.

Elizabeth Arden is a global prestige beauty products company with an extensive portfolio of prestige beauty brands sold in over 100 countries. The company's brand portfolio includes Elizabeth Arden skincare, color and fragrance products, Prevage anti-aging formulas, the celebrity fragrance brands of Britney Spears, Elizabeth Taylor, Mariah Carey, Taylor Swift, and Usher; the designer fragrance brands of Juicy Couture, Alberta Ferretti, Alfred Sung, Geoffrey Beene, Halston, Bob Mackie, John Varvatos, Kate Spade, Lucky Brand, and Rocawear; and the lifestyle fragrance brands Curve, Giorgio Beverly Hills, and PS Fine Cologne.

                   ELIZABETH ARDEN, INC. AND SUBSIDIARIES
                 CONSOLIDATED STATEMENT OF OPERATIONS DATA
                                (Unaudited)
           (In thousands, except percentages and per share data)

                                  Three Months Ended     Nine Months Ended
                                 --------------------  --------------------
                                 March 31,  March 31,  March 31,  March 31,
                                    2012       2011       2012       2011
                                 ---------  ---------  ---------  ---------
Net Sales                        $ 239,279  $ 231,296  $ 972,739  $ 921,750

Cost of Goods Sold:
  Cost of Sales                    118,781    115,597    489,548    481,934
  Depreciation Related to Cost
   of Goods Sold                       906      1,224      3,850      3,714
                                 ---------  ---------  ---------  ---------
    Total Cost of Goods Sold       119,687    116,821    493,398    485,648

Gross Profit                       119,592    114,475    479,341    436,102
Gross Profit Percentage               50.0%      49.5%      49.3%      47.3%

Selling, General and
 Administrative Expenses           104,582    102,915    371,480    349,354
Depreciation and Amortization        7,645      6,044     21,433     18,593
                                 ---------  ---------  ---------  ---------
Total Operating Expenses           112,227    108,959    392,913    367,947

Interest Expense, Net                5,291      5,434     16,339     16,317
Debt Extinguishment Charges              -      6,468          -      6,468

Income (Loss) Before Income
 Taxes                               2,074     (6,386)    70,089     45,370
(Benefit from) Provision for
 Income Taxes                         (117)    (3,135)    16,295      9,776
                                 ---------  ---------  ---------  ---------

Net Income (Loss)                $   2,191  $  (3,251)    53,794  $  35,594
                                 =========  =========  =========  =========

As reported:

  Net Income (Loss) Per Basic
   Share                         $    0.08  $   (0.12) $    1.85  $    1.29
  Net Income (Loss) Per Diluted
   Share                         $    0.07  $   (0.12) $    1.79  $    1.24

  Basic Shares                      29,116     28,130     29,017     27,543
  Diluted Shares                    30,069     28,130     29,997     28,666

  EBITDA (a)                     $  15,916  $   6,316  $ 111,711  $  83,994
  EBITDA margin (a)                    6.7%       2.7%      11.5%       9.1%

Adjusted to exclude debt
 extinguishment and expenses
 associated with the Global
 Efficiency Re-engineering
 initiative, net of taxes
 (b)(c):

  Net Income                     $   2,191  $     580  $  53,794  $  39,795

  Net Income Per Basic Share     $    0.08  $    0.02  $    1.85  $    1.44
  Net Income Per Diluted Share   $    0.07  $    0.02  $    1.79  $    1.39

  EBITDA (a)                     $  15,916  $  12,784  $ 111,711  $  91,078
  EBITDA margin (a)                    6.7%       5.5%      11.5%       9.9%

(a) EBITDA is defined as net income plus the provision for income taxes (or
net loss less the benefit from income taxes) plus interest expense, plus
depreciation and amortization. EBITDA should not be considered as an
alternative to income from operations or net income (as determined in
accordance with generally accepted accounting principles (GAAP)) as a
measure of our operating performance or to net cash provided by operating,
investing and financing activities (as determined in accordance with GAAP)
as a measure of our ability to meet cash needs. We believe that EBITDA is a
measure commonly reported and widely used by investors and other interested
parties as a measure of a company's operating performance and debt servicing
ability because it assists in comparing performance on a consistent basis
without regard to capital structure, depreciation and amortization or non-
operating factors (such as historical cost). Accordingly, as a result of our
capital structure, we believe EBITDA is a relevant measure. This information
has been disclosed here to permit a more complete comparative analysis of
our operating performance relative to other companies and of our debt
servicing ability. EBITDA may not, however, be comparable in all instances
to other similar types of measures. We have also disclosed EBITDA as
adjusted to reflect the effect of debt extinguishment and restructuring and
software implementation costs related to our Global Efficiency Re-
engineering initiative. This disclosure is being provided for comparability
purposes because we believe it is meaningful to our investors and other
interested parties to understand the EBITDA performance of the Company on a
consistent basis without regard to the effect of Global Efficiency Re-
engineering initiative expenses. EBITDA margin represents EBITDA divided by
Net Sales.

The table below reconciles net income (loss), as determined in accordance
with GAAP, to EBITDA and to EBITDA as adjusted: (For a reconciliation of net
income (loss) to EBITDA for prior periods, see the Company's filings with
the Securities and Exchange Commission which can be found on the Company's
website at http://www.elizabetharden.com/.)

(In thousands)                     Three Months Ended     Nine Months Ended
                                  --------------------  --------------------
                                  March 31,  March 31,  March 31,  March 31,
                                     2012       2011       2012       2011
                                  ---------  ---------  ---------  ---------
Net income (loss)                 $   2,191  $  (3,251) $  53,794  $  35,594
Plus:
  (Benefit from) Provision for
   income taxes                        (117)    (3,135)    16,295      9,776
  Interest expense, net               5,291      5,434     16,339     16,317
  Depreciation related to cost of
   goods sold                           906      1,224      3,850      3,714
  Depreciation and amortization       7,645      6,044     21,433     18,593
                                  ---------  ---------  ---------  ---------
EBITDA                               15,916      6,316    111,711     83,994
Debt extinguishment and Global
 Efficiency Re-engineering
 initiative expenses (c)                  -      6,468          -      7,084
                                  ---------  ---------  ---------  ---------
EBITDA as adjusted                $  15,916  $  12,784  $ 111,711  $  91,078
                                  =========  =========  =========  =========

(b) The table below reconciles the calculation of (i) net income (loss) and
(ii) net income (loss) per share on a basic and diluted basis from the
amounts reported in accordance with GAAP to such amounts before giving
effect to debt extinguishment and Global Efficiency Re-engineering expenses.
This disclosure is being provided for comparability purposes because we
believe it is meaningful to our investors and other interested parties to
understand the Company's operating performance on a consistent basis without
regard to the effect of debt extinguishment and Global Efficiency Re-
engineering expenses. The presentation in the table below of the non-GAAP
information titled "Net income as adjusted" and "Net income per basic and
diluted share as adjusted" is not meant to be considered in isolation or as
a substitute for net income or net income per basic and diluted share
prepared in accordance with GAAP.


(In thousands, except per share
 data)                             Three Months Ended     Nine Months Ended
                                  --------------------  --------------------
                                  March 31,  March 31,  March 31,  March 31,
                                     2012       2011       2012       2011
                                  ---------  ---------  ---------  ---------

Net Income:
  Net income (loss) as reported   $   2,191  $  (3,251) $  53,794  $  35,594
  Debt extinguishment and Global
   Efficiency Re-engineering
   initiative expenses, net of
   tax (c) (d)                            -      3,831          -      4,201
                                  ---------  ---------  ---------  ---------
  Net income as adjusted          $   2,191  $     580  $  53,794  $  39,795
                                  =========  =========  =========  =========

Net Income Per Basic Share:
  Net income (loss) per basic
   share as reported              $    0.08  $   (0.12) $    1.85  $    1.29
  Debt extinguishment and Global
   Efficiency Re-engineering
   initiative expenses, net of
   tax (c) (d)                            -       0.14          -       0.15
                                  ---------  ---------  ---------  ---------
  Net income per basic as
   adjusted                       $    0.08  $    0.02  $    1.85  $    1.44
                                  =========  =========  =========  =========

Net Income Per Diluted Share:
  Net income (loss) per diluted
   share as reported              $    0.07  $   (0.12) $    1.79  $    1.24
  Debt extinguishment and Global
   Efficiency Re-engineering
   initiative expenses, net of
   tax (c) (d)                            -       0.14          -       0.15
                                  ---------  ---------  ---------  ---------
  Net income per diluted share as
   adjusted                       $    0.07  $    0.02  $    1.79  $    1.39
                                  =========  =========  =========  =========

(c) For the three months ended March 31, 2011, includes $6.5 million of debt
restructuring costs. For the nine months ended March 31, 2011, includes $6.5
million of debt restructuring costs, $0.3 million related to the
implementation of our Oracle accounting and order processing systems and
$0.3 million of restructuring expenses related to our Global Efficiency Re-
engineering initiative.

(d) Our effective tax rate, which is calculated as a percentage of income
before income taxes, was 5.6% and 23.2% for the three and nine months ended
March 31, 2012, respectively. On a reported basis, for the three and nine
months ended March 31, 2011, our effective tax rate was 49.1% and 21.6%,
respectively. On an adjusted basis, for the three and nine months ended
March 31, 2011, our effective tax rate was 601.0% and 24.1%, respectively.



SEGMENT NET SALES

The table below is a comparative summary of our net sales by reportable segment for the three and nine months ended March 31, 2012 and 2011.

(In            Three Months     % Increase                      % Increase
 thousands)       Ended         (Decrease)  Nine Months Ended   (Decrease)
            ----------------- ------------- ----------------- --------------
                                   Constant                         Constant
              March    March         Rates    March    March          Rates
            31, 2012 31, 2011 GAAP    (e)   31, 2012 31, 2011  GAAP    (e)
            -------- -------- ---- -------- -------- -------- ----- --------
Segment Net
 Sales
 North
  America   $145,154 $142,755 1.7%     1.8% $625,215 $607,854  2.9%     2.7%
 Interna-
  tional      94,125   88,541 6.3%     7.1%  347,524  313,896 10.7%     7.8%
            -------- -------- ---- -------- -------- -------- ----- --------
Total       $239,279 $231,296 3.5%     3.8% $972,739 $921,750  5.5%     4.5%
            ======== ========               ======== ========


(e) Constant currency information compares results between periods assuming
exchange rates had remained constant period-over-period and excludes gains
and losses from foreign currency contracts. We calculate constant currency
information by translating current-period results using prior-year GAAP
foreign currency exchange rates. The gains and/or losses from foreign
currency contracts were not material for all periods presented.



                   ELIZABETH ARDEN, INC. AND SUBSIDIARIES
                       CONSOLIDATED BALANCE SHEET DATA
                                 (Unaudited)

(In thousands)                          March 31,     June 30,    March 31,
                                           2012         2011         2011
                                       -----------  -----------  -----------
Cash                                   $    58,207  $    58,850  $    33,817
Accounts Receivable, Net                   172,852      165,622      174,609
Inventories                                272,532      246,514      289,825
Property and Equipment, Net                 80,703       82,762       77,438
Exclusive Brand Licenses, Trademarks
 and Intangibles, Net                      221,738      184,758      186,600
Goodwill                                    21,054       21,054       21,054
Total Assets                               910,237      854,837      870,562
Short-Term Debt                                  -            -        8,100
Current Liabilities                        160,746     165, 497      199,338
Long-Term Liabilities                      267,386      271,575      263,230
Total Debt                                 250,000      250,000      258,100
Shareholders' Equity                       482,105      417,765      407,994
Working Capital                            410,295      388,897      375,301


                     SUPPLEMENTARY CASH FLOW INFORMATION
                                 (Unaudited)
                               (In thousands)

                                                     Nine Months Ended
                                                ---------------------------
                                                 March 31,       March 31,
                                                    2012            2011
                                                -----------     -----------

Net cash provided by operating activities       $    50,331     $    59,187
Net cash used in investing activities               (60,685)        (32,390)
Net cash provided by (used in) financing
 activities                                          10,919         (21,609)
Net (decrease) increase in cash and cash
 equivalents                                          (643)           6,936



In connection with the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, Elizabeth Arden, Inc. is hereby providing cautionary statements identifying important factors that could cause our actual results to differ materially from those projected in forward-looking statements (as defined in such act). Any statements that are not historical facts and that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance (often, but not always, indicated through the use of words or phrases such as "will likely result," "are expected to," "will continue," "is anticipated," "should," "estimated," "intends," "plans," "believes" and "projects") may be forward-looking and may involve estimates and uncertainties which could cause actual results to differ materially from those expressed in the forward-looking statements. These statements include, but are not limited to, our guidance and expectations regarding net sales, earnings, gross margins, operating cash flow and returns on invested capital. In addition, any such statements are qualified in their entirety by reference to, and are accompanied by, the following key factors that have a direct bearing on our results of operations:

--  factors affecting our relationships with our customers or our
    customers' businesses, including the absence of contracts with
    customers, our customers' financial condition, and changes in the
    retail, fragrance and cosmetic industries, such as the consolidation
    of retailers and the associated closing of retail doors as well as
    retailer inventory control practices, including, but not limited to,
    levels of inventory carried at point of sale and practices used to
    control inventory shrinkage;


--  risks of international operations, including foreign currency
    fluctuations, hedging activities, economic and political consequences
    of terrorist attacks, disruptions in travel, unfavorable changes in
    U.S. or international laws or regulations, diseases and pandemics, and
    political instability in certain regions of the world;


--  our reliance on license agreements with third parties for the rights
    to sell many of our prestige fragrance brands;


--  our reliance on third-party manufacturers for substantially all of our
    owned and licensed products and our absence of contracts with
    suppliers of distributed brands and components for manufacturing of
    owned and licensed brands;


--  delays in shipments, inventory shortages and higher costs of
    production due to the loss of or disruption in our distribution
    facilities or at key third party manufacturing or fulfillment
    facilities that manufacture or provide logistic services for our
    products;


--  our ability to respond in a timely manner to changing consumer
    preferences and purchasing patterns and other international and
    domestic conditions and events that impact retailer and/or consumer
    confidence and demand, such as domestic or global recessions or
    economic uncertainty;


--  our ability to protect our intellectual property rights;


--  the success, or changes in the timing or scope, of our new product
    launches, advertising and merchandising programs;


--  the quality, safety and efficacy of our products;


--  the impact of competitive products and pricing;


--  our ability to (i) implement our growth strategy and acquire or
    license additional brands or secure additional distribution
    arrangements, (ii) successfully and cost-effectively integrate
    acquired businesses or new brands, and (iii) finance our growth
    strategy and our working capital requirements;


--  our level of indebtedness, our ability to realize sufficient cash
    flows from operations to meet our debt service obligations and working
    capital requirements, and restrictive covenants in our revolving
    credit facility and the indenture for our 7 3/8% senior notes;


--  changes in product mix to less profitable products;


--  the retention and availability of key personnel;


--  changes in the legal, regulatory and political environment that
    impact, or will impact, our business, including changes to customs or
    trade regulations, laws or regulations relating to ingredients or
    other chemicals or raw materials contained in products or packaging,
    or accounting standards or critical accounting estimates;


--  the success of our global Elizabeth Arden brand repositioning
    efforts;


--  the success of our Global Efficiency Re-engineering initiative,
    including our transition to a turnkey manufacturing process and our
    new financial accounting and order processing system;


--  our ability to effectively implement, manage and maintain our global
    information systems;


--  our reliance on third parties for certain outsourced business
    services, including information technology operations and employee
    benefit plan administration;


--  the potential for significant impairment charges relating to our
    trademarks, goodwill or other intangible assets that could result from
    a number of factors, including downward pressure on our stock price;
    and


--  other unanticipated risks and uncertainties.


We caution that the factors described herein could cause actual results to differ materially from those expressed in any forward-looking statements we make and that investors should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of anticipated or unanticipated events or circumstances. New factors emerge from time to time, and it is not possible for us to predict all of such factors. Further, we cannot assess the impact of each such factor on our results of operations or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. This press release is qualified in its entirety by the cautionary statements and risk factor disclosure contained in our Securities and Exchange Commission filings, including our Annual Report on Form 10-K for the year ended June 30, 2011.

Company Contact:
Marcey Becker
Senior Vice President, Finance

Investor/Press Contact:
Allison Malkin/Michael Fox
Integrated Corporate Relations
(203) 682-8200


SOURCE: Elizabeth Arden, Inc.