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Investor Relations: Press Release

Elizabeth Arden, Inc. Announces Fourth Quarter and Fiscal 2009 Results
Fiscal 2009 Net Sales of $1.07 Billion

Fiscal 2009 GAAP EPS of ($0.22); Fiscal 2009 Adjusted EPS of $0.47

Introduces Fiscal 2010 Guidance for Net Sales of $1.09 Billion to $1.1 Billion

NEW YORK, Aug. 13, 2009 (GLOBE NEWSWIRE) -- Elizabeth Arden, Inc. (Nasdaq:RDEN), a global prestige beauty products company, today announced financial results for its fourth fiscal quarter and year ended June 30, 2009.

FOURTH QUARTER RESULTS

For the fourth fiscal quarter ended June 30, 2009, the Company reported net sales of $212.6 million, a decrease of 10%, as compared to the fourth quarter of the prior fiscal year. Excluding the unfavorable impact of foreign currency translation, net sales decreased by 5.8%. For the fourth fiscal quarter ended June 30, 2009, the net loss per diluted share was $0.13 as compared to a net loss per diluted share of $0.38 for the prior year period. Excluding restructuring and expenses associated with the Company's Global Efficiency Re-engineering initiative, the net loss per diluted share for the three months ended June 30, 2009 was $0.07, compared to net income per diluted share of $0.22 for the prior year period. The prior year period also excludes expenses and non-cash charges related to the Liz Claiborne license agreement. A reconciliation between GAAP and adjusted results can be found in the tables and footnotes to this press release.

FISCAL 2009 RESULTS

For the year ended June 30, 2009, the Company reported net sales of $1.07 billion, a decrease of 6.2%, or 3.0% excluding the unfavorable impact of foreign currency translation, as compared to the prior year period. Net income per diluted share, excluding expenses and non-cash charges related to the Liz Claiborne license agreement, restructuring expenses and expenses associated with the Company's Global Efficiency Re-engineering initiative, was $0.47, as compared to net income per diluted share of $1.31, excluding restructuring expenses and non-cash and other charges related to the Liz Claiborne license agreement, for the prior year period. On a reported basis, the net loss per diluted share was $0.22 for the year ended June 30, 2009, as compared to net income of $0.68 per diluted share for the year ended June 30, 2008.

E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc., commented, "We finished fiscal 2009 as we had anticipated, and while it was a challenging year, we accomplished a great deal. Our Global Efficiency Re-engineering initiative allowed us to improve gross margins, reduce inventories by $90 million year over year, and generate cash flow from operations of $37 million. Our brand innovation also experienced global success, including the recently launched Elizabeth Arden fragrance, Pretty Elizabeth Arden, which was the number two woman's fragrance launch through June 2009 in the U.S. and is doing well internationally, and Viva la Juicy, which was the number one launch last fall in the U.S. and contributed to the continued global expansion and success of the Juicy Couture fragrance franchise."

Mr. Beattie continued, "During fiscal 2009, the Company completed a comprehensive multi-year planning process to systematically improve gross margins, EBITDA margins, organic brand growth and return on invested capital. I am confident that each of these initiatives is well thought through, measurable and has traction as we enter fiscal 2010. In fact, we have begun to benefit from these initiatives during fiscal 2009 with steadily improved gross margin, improved customer service levels, reduced inventory and solid operating cash flow generation. Unfortunately, the continued gap between retail sales and inventory replenishment will delay the impact these improvements will have on operating results. As retailer inventory replenishment improves, operating earnings should accelerate considerably."

FISCAL 2010 OUTLOOK

Over the past year, the Company's results have been impacted by the de-stocking of inventory by retailers. Given limited current visibility, the Company is not projecting a return to normalized replenishment of basic stock inventory by its global retail partners in fiscal 2010. This lack of replenishment, particularly in its higher profit margin North American mass, travel retail and distributor markets businesses, negatively impacts EBITDA margin despite growth in gross margin. Based on these factors, the Company's guidance for the fiscal year ending June 30, 2010 is for net sales to increase by 2.0% to 3.5%, as compared to the prior year period, and earnings per diluted share to be in the range of $0.50 to $0.65. Gross margins are expected to increase by 200 to 250 basis points due to the anticipated Global Re-engineering savings and improvement in sales dilution. The Company expects to use a portion of these savings to drive brand innovation and support the Company's key brands. Cash flow from operations is expected to increase from $37 million in fiscal 2009 to $50 million to $60 million in fiscal 2010 due to continued inventory reduction and higher earnings.

For the first quarter of fiscal 2010, the Company expects net sales of $255 million to $265 million and a loss per diluted share of $0.03 to $0.08. The net sales guidance for the first fiscal quarter assumes a negative impact from foreign currency translation of approximately 3%. The first fiscal quarter and full fiscal year earnings guidance is based on an effective tax rate of 30%.

The guidance assumes July 2009 foreign currency rates and excludes restructuring and other expenses associated with the Company's Global Efficiency Re-engineering initiative. The Company notes that the high degree of ongoing global economic uncertainty may continue to have a negative effect on retailer and consumer confidence and demand, and, along with the foreign currency volatility, makes forecasting difficult. The Company believes that net sales, earnings, gross margins and cash flow guidance, excluding the impact of foreign currency and restructuring and other expenses associated with the Company's Global Efficiency Re-engineering initiative, as applicable, facilitates period to period comparisons of the Company's operating and financial performance on a consistent basis.

CONFERENCE CALL INFORMATION

The Company will host a conference call today at 4:30 p.m. Eastern Time. All interested parties can listen to a live web cast of the Company's conference call by visiting the "Corporate Info" section on the Company's web site at http://www.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 September 13, 2009.

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(R) anti-aging treatments, the celebrity fragrance brands of Elizabeth Taylor, Mariah Carey, Britney Spears, Hilary Duff, Danielle Steel, and Usher; the designer fragrance brands of Juicy Couture, Alberta Ferretti, Alfred Sung, Badgley Mischka, Bob Mackie, GANT, Geoffrey Beene, Liz Claiborne, Halston, Lucky Brand, Nanette Lepore 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     Twelve Months Ended
                       ----------------------- -----------------------
                         June 30,    June 30,    June 30,    June 30,
                           2009        2008        2009        2008
                       ----------- ----------- ----------- -----------
 Net Sales             $  212,562  $  236,289  $1,070,225  $1,141,075
 Cost of Sales            120,692     146,165     632,654     674,957
                       ----------- ----------- ----------- -----------
 Gross Profit              91,870      90,124     437,571     466,118
 Gross Profit
  Percentage                 43.2%       38.1%       40.9%       40.8%

 Selling, General and
  Administrative
  Expenses                 84,955      97,483     401,078     392,320
 Depreciation and
  Amortization              6,953       6,307      26,158      24,768
                       ----------- ----------- ----------- -----------
 Total Operating
  Expenses                 91,908     103,790     427,236     417,088
 Interest Expense, Net      5,570       5,774      24,814      27,595
                       ----------- ----------- ----------- -----------
 (Loss) Income Before
  Income Taxes             (5,608)    (19,440)    (14,479)     21,435
 (Benefit from)
  Provision for Income
  Taxes                    (1,999)     (9,005)     (8,316)      1,534
                       ----------- ----------- ----------- -----------
 Net (Loss) Income     $   (3,609) $  (10,435) $   (6,163) $   19,901
                       =========== =========== =========== ===========

 As reported:
 ------------
   Net (Loss) Income
    Per Basic Share    $    (0.13) $    (0.38) $    (0.22) $     0.71
   Net (Loss) Income
    Per Diluted Share  $    (0.13) $    (0.38) $    (0.22) $     0.68

   Basic Shares            27,901      27,821      27,971      27,981
   Diluted Shares          27,901      27,821      27,971      29,303

   EBITDA (a)          $    6,915  $   (7,359) $   36,493  $   73,798
   EBITDA margin (a)          3.3%       (3.1)%       3.4%        6.5%

 Adjusted to exclude
  the effect of Liz
  Claiborne-related,
  Global Efficiency Re-
  engineering and
  restructuring
  expenses, net of
  taxes (b)(c):
  -------------
   Gross Profit        $   91,870  $  105,110  $  457,497  $  481,104
   Gross Profit
    Percentage               43.2%       43.9%       42.7%       42.0%

   Net (Loss) Income   $   (1,850) $    6,290  $   13,363  $   38,119

   Net (Loss) Income
    Per Basic Share    $    (0.07) $     0.23  $     0.48  $     1.36
   Net (Loss) Income
    Per Diluted Share  $    (0.07) $     0.22  $     0.47  $     1.31

   EBITDA (a)          $    9,954  $   20,567  $   67,847  $  103,798
   EBITDA margin (a)          4.7%        8.6%        6.3%        9.1%

 (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 (loss) from operations or net
 income (loss) (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) or 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 Liz
 Claiborne-related, restructuring expenses and 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 inventors and other interested parties to
 understand the EBITDA performance of the Company on a consistent
 basis without regard to the effect of such Liz Claiborne-related,
 restructuring and other expenses. EBITDA margin represents EBITDA
 divided by Net Sales.

The table below reconciles net income, as determined in accordance with GAAP, to EBITDA and to EBITDA as adjusted: (For a reconciliation of net income 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 www.elizabetharden.com)



 (In thousands)          Three Months Ended       Twelve Months Ended
                       ----------------------- -----------------------
                         June 30,    June 30,    June 30,    June 30,
                           2009        2008        2009        2008
                       ----------- ----------- ----------- -----------
 Net (loss) income     $   (3,609) $  (10,435) $   (6,163) $   19,901
 Plus:
   (Benefit from)
    provision for
    income taxes           (1,999)     (9,005)     (8,316)      1,534
   Interest expense,
    net                     5,570       5,774      24,814      27,595
   Depreciation and
    amortization            6,953       6,307      26,158      24,768
                       ----------- ----------- ----------- -----------
 EBITDA                     6,915      (7,359)     36,493      73,798
 Liz Claiborne-related
  expenses (c)                 30      19,580      23,344      19,580
 Restructuring and
  other expenses (d)        3,009         884       8,010       2,958
 Product discontinua-
  tion expenses                --       7,462          --       7,462
                       ----------- ----------- ----------- -----------
 EBITDA as adjusted    $    9,954  $   20,567  $   67,847  $  103,798
                       =========== =========== =========== ===========

 (b) The table below reconciles the calculation of (i) gross profit,
 (ii) net (loss) income and (iii) net (loss) income per share on a
 basic and diluted basis from the amounts reported in accordance with
 GAAP to such amounts before giving effect to Liz Claiborne related,
 restructuring expenses and Global Efficiency Re-engineering related
 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
 such Liz Claiborne-related, restructuring and other expenses. The
 presentation in the table below of the non-GAAP information titled
 "Gross profit as adjusted" and "Net (loss) income as adjusted" and
 "Net (loss) income per basic and diluted share as adjusted" is not
 meant to be considered in isolation or as a substitute for gross
 profit, net (loss) income or net (loss) income per basic and diluted
 share prepared in accordance with GAAP.


 (In thousands, except   Three Months Ended     Twelve Months Ended
  per share data)      ----------------------- -----------------------
                         June 30,    June 30,    June 30,    June 30,
                           2009        2008        2009        2008
                       ----------- ----------- ----------- -----------
 Adjusted to exclude
  the effect of Liz
  Claiborne-related,
  product
  discontinuation,
  restructuring and
  other expenses:
 -------------------

 Gross Profit:
 -------------
   Gross profit as
    reported           $   91,870  $   90,124  $  437,571  $  466,118
   Liz Claiborne-
    related and product
    discontinuation
    expenses (c)               --      14,986      19,926      14,986
                       ----------- ----------- ----------- -----------
   Gross profit as
    adjusted           $   91,870  $  105,110  $  457,497  $  481,104
                       =========== =========== =========== ===========
 Net (Loss) Income (e):
 ----------------------
   Net (loss) income as
    reported           $   (3,609) $  (10,435) $   (6,163) $   19,901
   Liz Claiborne-
    related and product
    discontinuation
    expenses, net of
    taxes (c)                  17      16,421      14,538      16,421
   Restructuring and
    other expenses, net
    of taxes (d)            1,742         304       4,988       1,797
                       ----------- ----------- ----------- -----------
   Net (loss) income as
    adjusted           $   (1,850) $    6,290  $   13,363  $   38,119
                       =========== =========== =========== ===========
 Net (Loss) Income Per
  Basic Share (e):
 ---------------------
   Net (loss) income
    per basic share as
    reported           $    (0.13) $    (0.38) $    (0.22) $     0.71
   Liz Claiborne-
    related, product
    discontinuation,
    restructuring and
    other expenses, net
    of tax (c)(d)            0.06        0.61        0.70        0.65
                       ----------- ----------- ----------- -----------
   Net (loss) income
    per basic as
    adjusted           $    (0.07) $     0.23  $     0.48  $     1.36
                       =========== =========== =========== ===========
 Net (Loss) Income Per
  Diluted Share (e):
 ---------------------
   Net (loss) income
    per diluted share
    as reported        $    (0.13) $    (0.38) $    (0.22) $     0.68
   Liz Claiborne-
    related, product
    discontinuation,
    restructuring and
    other expenses, net
    of tax (c)(d)            0.06        0.60        0.69        0.63
                       ----------- ----------- ----------- -----------
   Net (loss) income
    per diluted share
    as adjusted        $    (0.07) $     0.22  $     0.47  $     1.31
                       =========== =========== =========== ===========

 (c) For the twelve months ended June 30, 2009, includes $4.4 million
 ($1.0 million in gross profit) of Liz Claiborne transition expenses
 and $18.9 million of non-cash expenses relating to the Liz Claiborne
 inventory purchased by the Company at a higher cost prior to the
 effective date of the license agreement. Both the three months and
 twelve months ended June 30, 2008, include $12.9 million reimbursed
 to Liz Claiborne for advertising, marketing and transition expenses
 and $6.7 million of non-cash expenses relating to Liz Claiborne
 inventory purchased by the Company at a higher cost prior to the
 effective date of the license agreement.

 (d) For the three months ended June 30, 2009, restructuring and other
 expenses include $1.7 million related to implementation of our Oracle
 accounting and order processing systems and $1.3 million of
 restructuring expenses related to our Global Efficiency
 Re-engineering initiative. In addition, the three months ended June
 30, 2009 and 2008 include $0.1 million and $0.9 million,
 respectively, of restructuring expenses that are not related to our
 Global Efficiency Re-engineering initiative. For the twelve months
 ended June 30, 2009, restructuring and other expenses include $3.4
 million related to implementation of our Oracle accounting and order
 processing systems and $3.5 million of restructuring expenses related
 to our Global Efficiency Re-engineering initiative. For the twelve
 months ended June 30, 2008, restructuring includes $0.7 million
 related to our Global Efficiency Re-engineering initiative. In
 addition, the twelve months ended June 30, 2009 and 2008 include $1.1
 million and $2.3 million, respectively, of restructuring expenses
 that are not related to our Global Efficiency Re-engineering
 initiative.

 (e) On a reported basis, for the three and twelve months ended June
 30, 2009, our effective tax rate, which is calculated as a percentage
 of the loss before income taxes, was 35.6% and 57.4%, respectively.
 On an adjusted basis, for the three and twelve months ended June 30,
 2009, our effective tax rate was 28.0% and 20.8%, respectively. The
 difference in the effective tax rates is primarily due to the Liz
 Claiborne-related expenses that were incurred in the U.S. in the
 first half of fiscal 2009. On a reported basis for the three and
 twelve months ended June 30, 2008, our effective tax rate was 46.3%
 and 7.2% respectively. On an adjusted basis for both the three and
 twelve months ended June 30, 2008, our effective tax rate was 25.9%.


                           SEGMENT NET SALES
                             (Unaudited)

The table below is a comparative summary of our net sales by reportable segment for the three and twelve months ended June 30, 2009 and 2008:



 (In thousands)           Three Months Ended     Twelve Months Ended
                       ----------------------- -----------------------
                         June 30,    June 30,    June 30,    June 30,
                           2009        2008        2009        2008
                       ----------- ----------- ----------- -----------
 Segment Net Sales:
   North America
    Fragrance          $  116,432  $  136,126  $  662,235  $  688,807
   International           85,225      91,901     366,361     400,689
   Other                   10,905      11,482      41,629      54,799
                       ----------- ----------- ----------- -----------
 Total                 $  212,562  $  239,509  $1,070,225  $1,144,295
                       =========== =========== =========== ===========

 Reconciliation:
   Segment Net Sales   $  212,562  $  239,509  $1,070,225  $1,144,295
   Less:
     Unallocated Sales
      Allowances(1)            --       3,220          --       3,220
                       ----------- ----------- ----------- -----------
     Net Sales         $  212,562  $  236,289  $1,070,225  $1,141,075
                       =========== =========== =========== ===========

 (1) In May 2008, we entered into an exclusive long-term global
 licensing agreement for the Liz Claiborne fragrance brands, which
 became effective on June 9, 2008. Amounts reflect $3.2 million of
 unallocated sales allowances, related to the Liz Claiborne license
 agreement.


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

                                                 June 30,    June 30,
                                                   2009        2008
                                               ----------- -----------
 Cash                                          $   23,102  $   26,396
 Accounts Receivable, Net                         190,273     217,446
 Inventories                                      318,535     408,563
 Property and Equipment, Net                       64,110      52,148
 Exclusive Brand Licenses, Trademarks and
  Intangibles, Net                                207,375     221,253
 Total Assets                                     879,087     970,734
 Short-Term Debt                                  115,000     119,000
 Current Portion of Long-Term Debt                    545       1,261
 Current Liabilities                              307,126     385,062
 Long-Term Liabilities                            235,183     249,071
 Total Debt                                       338,911     343,957
 Shareholders' Equity                             336,778     336,601
 Working Capital                                  286,612     306,735

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," "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 and cash flows, and the costs, savings and benefits we expect in connection with our Global Efficiency Re-engineering initiative and related restructuring plan. 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, unfavorable changes in U.S. or
   international tax laws or regulations, diseases and pandemics and
   political instability in certain regions of the world;
 * 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 consumer confidence and
   demand, such as the current global recession;
 * 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
   flow from operations to meet our debt service obligations and
   working capital requirements and the restrictive covenants in our
   revolving credit facility and the indenture for our 7 3/4% senior
   subordinated 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 or accounting standards or critical
   accounting estimates;
 * the success of, and costs associated with, our Global Efficiency
   Re-engineering initiative and related restructuring plan,
   including our transition to a turnkey manufacturing process and
   implementation of our new Oracle financial accounting and order
   processing system;
 * the potential for significant impairment charges relating to our
   trademark, goodwill or other long-lived 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, 2008 and our Quarterly Report on Form 10-Q for the period ended March 31, 2009.

CONTACT:  Elizabeth Arden, Inc.
          Marcey Becker, Senior Vice President, Finance
          (203) 462-5809

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