Elizabeth Arden (RDEN) 2Q16 Results: Misses EPS by $0.50 and Misses on Revenue

Executive Summary

• Elizabeth Arden reported 2Q16 revenues of $316.2 million, a decrease of 5.2% from the year-ago quarter and missing the consensus estimate of $340.9 million. Excluding currency effects, sales were down 1%.
• Diluted non-GAAP EPS was $0.10, below the consensus estimate of $0.60.
• Sales of Elizabeth Arden branded products led growth, increasing by 3%. The growth was driven by higher fragrance and skin care sales, which increased by 8% and 2%, respectively.
• Management expects foreign currency headwinds to negatively impact full-year net sales growth by approximately 3.75%. In November 2015, the company had estimated a 3% negative impact.