New York, New York (August 9, 2012) -- Elizabeth Arden, Inc. (NASDAQ: RDEN), a global prestige beauty products company, today announced financial results for its fourth fiscal quarter and fiscal year ended June 30, 2012.

          For the quarter ended June 30, 2012, the Company reported net sales of $265.5 million, an increase of 4.6%, as compared to the fourth quarter of the prior fiscal year. Excluding the unfavorable impact of foreign currency translation, net sales increased by 8.0%.

          On an adjusted basis, net income per diluted share for the current year period was $0.28. On a reported basis, net income per diluted share for the quarter ended June 30, 2012 was $0.12, as compared to net income per diluted share of $0.18 for the prior year period. Adjusted net income per diluted share excludes transition expenses and other costs associated with the fragrance license acquisitions completed by the Company in the fourth quarter and license termination 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, 2012, the Company reported net sales of $1.238 billion, an increase of 5.3%. The impact from foreign currency translation on net sales was immaterial as compared to the prior fiscal year.

          On an adjusted basis, net income per diluted share for fiscal 2012 was $2.07 as compared to $1.56 for fiscal 2011. On a reported basis, net income per diluted share was $1.91, as compared to $1.41 for the prior fiscal year. Adjusted net income per diluted share for fiscal 2012 excludes transition costs and other expenses associated with the fragrance license acquisitions completed by the Company in the fourth quarter and license termination costs. For the prior fiscal year, adjusted net income per diluted share excludes debt extinguishment charges and expenses associated with the Company's Global Efficiency Re-engineering initiative.

          Net sales for the Company's international segment increased by 9.8%, or 9.4% at constant rates, over the prior fiscal year, and net sales in the Company's North America segment grew by 2.9%. Sales growth was broad based across the Company's international businesses and was strongest in its European, travel retail and emerging markets. Net sales growth in North America benefitted from the strong sales performance in the Company's prestige business. Gross margin (adjusted) and EBITDA margin increased by 230 and 180 basis points, respectively, as compared to the prior fiscal year.

          E. Scott Beattie, Chairman, President and Chief Executive Officer of Elizabeth Arden, Inc., commented, "This was an important year for our Company as we reported another year of solid earnings growth and margin expansion, while significantly advancing our key initiatives. For fiscal 2013, we expect strong sales growth and another year of improved operating performance."

          Mr. Beattie continued, "Consistent improvement in our operational metrics continues to be driven by the building blocks of our Global Efficiency Re-engineering initiative that has created an efficient and scalable global operational platform. This, combined with tremendous efficiency in working capital management, bodes well as we grow our business. As we look ahead, our priorities are focused on accelerating the global growth of the Elizabeth Arden brand, expanding sales of our fragrance portfolio, particularly in Europe, integrating and growing our newly acquired fragrance brands, and continuing to drive operational efficiencies. These are the key initiatives driving our margins, earnings and return on invested capital over the next several years."

          For fiscal 2013, net sales are expected to increase by 13.5% to 15.0% over the prior fiscal year. The annual net sales guidance assumes an unfavorable impact from foreign currency rates of approximately 1.40%. Earnings per diluted share are expected to be in the range of $2.55 to $2.70. Gross margin for fiscal 2013 is expected to increase by 175 to 200 basis points as compared to gross margin (adjusted) for fiscal 2012. The full year earnings guidance assumes an effective tax rate of 25% and 30.4 million fully diluted shares outstanding. The earnings and gross margin guidance for fiscal 2013 excludes non-recurring charges associated with the Elizabeth Arden brand repositioning as well as expenses related to the fragrance license acquisitions completed in the fourth quarter of 2012.

          For the first quarter of fiscal 2013, the Company expects net sales of $330 million to $340 million as compared to $303.5 million of net sales for the first quarter of the prior fiscal year. Earnings per diluted share are expected to be in the range of $0.38 to $0.43. For the first half of fiscal 2013, the Company expects net sales of $825 million to $840 million as compared to $733.5 million of net sales for the first half of the prior fiscal year. Earnings per diluted share for the first half are expected to be in the range of $1.98 to $2.08. The earnings guidance excludes non-recurring charges related to the Elizabeth Arden brand repositioning as well as expenses related to the recently completed fragrance license acquisitions.

          The non-recurring charges associated with the Elizabeth Arden brand repositioning for fiscal 2013 are expected to result from costs for product assortment changes and are currently estimated at $8 million (pre-tax), or $0.15 per diluted share, of which $0.12 per diluted share is expected to be incurred in the first quarter ending September 30, 2012. In addition, during fiscal 2013, the Company will incur expenses related to the recently completed fragrance license acquisitions. These expenses result primarily from inventory purchased by the Company at a higher cost prior to the effective date of the recent license acquisitions, are estimated at $11.7 million (pre-tax), or $0.26 per diluted share, of which $6.4 million are non-cash expenses, and are expected to be incurred substantially in the first quarter of fiscal 2013.

          The guidance is based on current 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

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, the celebrity fragrance brands of Britney Spears, Elizabeth Taylor, Justin Bieber, Mariah Carey, Nicki Minaj, Taylor Swift, and Usher; the designer fragrance brands of Juicy Couture, Alfred Sung, BCBGMAXAZRIA, Geoffrey Beene, Halston, Bob Mackie, Ed Hardy, John Varvatos, Kate Spade, Lucky Brand, True Religion and Rocawear; and the lifestyle fragrance brands Curve, Giorgio Beverly Hills, and PS Fine Cologne.

The table below is a summary of our net sales by reportable segment for the three and twelve months ended June 30, 2012 and 2011.

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:

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.

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