Elizabeth Arden, Inc. said last week that its first quarter loss has narrowed helped by gross margin improvements due to increased sales of higher margin brands and lower distribution costs.
The cosmetics maker reported a loss of $13.7 million compared to a loss of $16.7 million one year ago. Revenue grew to $140.8 million, a 4.5% jump from $134.8 million, driven by an increase in fragrance sales to mass retail customers, the launch of the Elizabeth Arden Provocative Woman fragrance, improved travel retail performance and the favorable impact of foreign currency rates, the company said. Partially offsetting the positive sales growth were an increase in costs for in-store promotional materials to support the launch of the new fragrance, which debuted in U.S. department stores in April and is set to launch in international markets in September. The quarter ended May 1.
The company increased marketing expenses in the first quarter to support both the launch of the new fragrance and the skinsimple skin care launch at Wal-mart. Selling, general and administrative expenses, which includes marketing expenditures, were $66.4 million compared to $55.6 million one year ago.
In March, the company also signed a fragrance and license agreement with pop icon Britney Spears to develop and market her own line of perfumes, skincare and cosmetics. The first fragrance in U.S. department stores in September.
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