New York, New York (August 11, 2011) -- 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, 2011.

          For the quarter ended June 30, 2011, the Company reported net sales of $253.8 million, an increase of 11.2%, as compared to the fourth quarter of the prior fiscal year. Excluding the favorable impact of foreign currency translation, net sales increased by 7.7%.

          Net income per diluted share for the fourth quarter ended June 30, 2011 was $0.18, as compared to net income per diluted share of $0.08 for the prior year period. For the prior year period, net income per diluted share was $0.13, excluding expenses associated with the Company's Global Efficiency Re-engineering initiative and other costs. A reconciliation between GAAP and adjusted results can be found in the tables and footnotes at the end of this press release.

          For the year ended June 30, 2011, the Company reported net sales of $1.176 billion, an increase of 6.5%, or 5.9% excluding the favorable impact of foreign currency, as compared to the prior fiscal year. On a reported basis, net income per diluted share was $1.41, as compared to $0.68 for the prior fiscal year. Excluding debt extinguishment charges and expenses associated with the Company's Global Efficiency Re-engineering initiative, net income per diluted share for fiscal 2011 was $1.56. For the prior fiscal year, excluding expenses associated with the Company's Global Efficiency Re-engineering initiative and other costs, net income per diluted share was $0.87.

          E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc., commented, "Our focus over the past several years has been on delivering consistent improvement in our key operating metrics. I am pleased to report that we have delivered a record year of sales and profitability. For fiscal 2011, gross margins increased by 240 basis points, and we expect an additional 200 to 225 basis points of improvement for fiscal 2012. EBITDA margins on an adjusted basis grew by 190 basis points, and cash flow from operations for fiscal 2011 was $98 million, allowing us to end the year with $59 million of cash and no borrowings outstanding under our revolving credit facility."

          Mr. Beattie continued, "Our results include solid organic growth of our brand portfolio across all of our businesses. Net sales within our North American business increased by 5% for the fiscal year and were driven by market share gains in our U.S. mass business. Our international sales growth of 9% for the fiscal year benefited from strength in our European and travel retail and distributor businesses. Global sales of Elizabeth Arden branded products increased by 8%, reflecting our focus on organically growing the Elizabeth Arden brand and the re-alignment of our marketing organization to better support global brand management."

          Mr. Beattie concluded, "As we begin fiscal 2012, our priorities remain unchanged. We continue to focus on driving the organic growth of our brand portfolio, including expanding the market share of our fragrance business in Western Europe and in high growth emerging markets. We made significant progress in increasing the distribution of our core brands with key retailers in Europe, growing sales of our fragrances to retail customers in Europe by 20% in fiscal 2011, and we expect this momentum to continue. We are also beginning a re-positioning of the Elizabeth Arden brand which is intended to drive organic growth of that brand on a global basis, particularly in international markets. We expect these growth drivers to result in improved operating leverage and accelerated growth in earnings and return on invested capital over the next several years."

          The Company also recently amended its long-term license agreement with Liz Claiborne, Inc. to acquire the trademarks for the Curve fragrance brands and selected other smaller fragrance brands. The amendment also includes a lower effective royalty rate for the remaining licensed fragrance brands, including Juicy Couture and Lucky Brand fragrances, reduces the future minimum guaranteed royalties for the term of the license, and requires a pre-payment of royalties for the remainder of calendar 2011. The Company paid Liz Claiborne, Inc. $58.4 million in cash in connection with this transaction and expects the transaction to be modestly accretive to earnings for fiscal 2012 and more accretive beginning in fiscal 2013.

          Mr. Beattie commented, "We believe this transaction allows us to increase our investment behind these brands and accelerate their growth, particularly internationally."

          During the third quarter of fiscal 2011, the Company refinanced its long-term bonds with a new issue of $250 million aggregate principal amount of Senior Notes due March 2021 and amended and extended the maturity of its bank credit facility to January 2016. Through this refinancing, the Company also added $30 million of additional long-term capital with minimal impact to the Company's borrowing costs. The Company incurred a pre-tax charge of $6.5 million during fiscal 2011 related to this refinancing.

          For fiscal 2012, net sales are expected to increase by 5.0% to 6.0% over the prior fiscal year, and earnings per diluted share are expected to be in the range of $1.90 to $2.00. The annual net sales guidance assumes a favorable impact from foreign currency rates of approximately 0.5%. The earnings guidance assumes an effective tax rate of 25% and 30.0 million fully diluted shares outstanding. Gross margin for fiscal 2012 is expected to increase by 200 to 225 basis points as compared to fiscal 2011. For the first quarter of fiscal 2012, the Company expects net sales of $295 million to $305 million and earnings per diluted share of $0.25 to $0.30. The net sales guidance for the first quarter of fiscal 2012 assumes a favorable impact from foreign currency rates of approximately 2%.

          The guidance assumes current foreign currency rates. The Company 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.

          The Company will host a conference call today at 9:00 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 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 8, 2011.

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, Bob Mackie, Geoffrey Beene, Halston, John Varvatos, Kate Spade, Lucky Brand, and Rocawear; and the lifestyle fragrance brands Curve, Giorgio Beverly Hills, and PS Fine Cologne.

Commencing July 1, 2010, our operations and management reporting structure were reorganized into two reportable segments, North America and International. The portion of our business operations that previously sold Elizabeth Arden fragrance, cosmetic and skin care products in prestige department stores in the United States and through the Red Door beauty salons, which was previously reported as part of our Other segment, has been consolidated with the North America Fragrance segment to create the North America segment.

The table below is a summary of our net sales by reportable segment for the three and twelve months ended June 30, 2011 and 2010.

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, and the savings and benefits we expect in connection with our Global Efficiency Re-engineering initiative. 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:

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, 2010.

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