*

Net sales headwinds to continue for the first half of fiscal 2015, resulting primarily from continued proactive tightening of distribution and a lower level of product innovation as compared to the first half of the prior fiscal year;

*

Net sales increases in the second half of the fiscal year versus the prior year period as the year-over-year product launch comparisons moderate and the Company begins to realize the impact of improved pricing;

*

Gross margin expansion due to improved pricing, better sales mix, lower discounts and realization of reduced supply chain and product costs;

*

Lower overall selling, general and administrative expenses, with some reinvestment of 2014 Improvement Plan savings to drive future growth;

*

Improved EBITDA margins from gross margin expansion and lower selling, general and administrative expenses; and

*

Stronger cash flow from operations as a result of modestly higher earnings and lower investment in inventory.

Company Contact:

Marcey Becker
Senior Vice President, Finance

Investor/Press Contact:

Allison Malkin/Michael Fox
Integrated Corporate Relations
(203) 682-8200

Three Months Ended

September 30,

September 30,

2014

2013

Net Sales

$

270,378

$

343,609

Cost of Goods Sold:

   Cost of Sales

161,326

193,674

   Depreciation Related to Cost of Goods Sold

1,999

1,830

        Total Cost of Goods Sold

163,325

195,504

Gross Profit

107,053

148,105

Gross Profit Percentage

39.6

%

43.1

%

Selling, General and Administrative Expenses

113,865

129,372

Depreciation and Amortization

10,713

10,699

Total Operating Expenses

124,578

140,071

Interest Expense, Net

7,756

6,032

(Loss) Income Before Income Taxes

(25,281

)

2,002

Provision for Income Taxes

224

414

Net (Loss) Income

$

(25,505

)

$

1,588

Net Loss Attributable to Noncontrolling Interests

(155

)

(109

)

Net (Loss) Income Attributable to Elizabeth Arden Shareholders

(25,350

)

1,697

Less:  Accretion and Dividend on Preferred Stock (c)

20,446

--

Net (Loss) Income Attributable to Elizabeth Arden Common
   Shareholders

$

(45,796

)

$

1,697

As reported:

Net (Loss) Income Per Basic Share Attributable to Elizabeth Arden
   Common Shareholders

$

(1.54

)

$

0.06

Net (Loss) Income Per Diluted Share Attributable to Elizabeth Arden
   Common Shareholders

$

(1.54

)

$

0.06

Basic Shares

29,781

29,679

Diluted Shares

29,781

30,288

EBITDA (a)

$

(4,813

)

$

20,563

EBITDA margin (a)

(1.8

)%

6.0

%

Adjusted to exclude non-recurring costs, net of taxes (b)(c)(d):

Net Sales

$

273,057

$

343,609

Gross Profit

$

109,769

$

151,877

Gross Profit Percentage

40.2

%

44.2

%

Net (Loss) Income Attributable to Elizabeth Arden Common
   Shareholders

$

(12,940

)

$

6,752

Net (Loss) Income Per Basic Share Attributable to Elizabeth Arden
   Common Shareholders

$

(0.43

)

$

0.23

Net (Loss) Income Per Diluted Share Attributable to Elizabeth Arden
   Common Shareholders

$

(0.43

)

$

0.22

EBITDA (a)

$

1,279

$

27,132

EBITDA margin (a)

0.5

%

7.9

%

(a)     EBITDA is defined as net income attributable to Elizabeth Arden common shareholders plus the provision for income taxes (or net loss attributable to Elizabeth Arden common shareholders, less the benefit from income taxes) plus interest expense, plus depreciation and amortization, plus net income (or net loss) attributable to noncontrolling interest, plus accretion and dividends on preferred stock. EBITDA should not be considered as an alternative to income (loss) from operations or net income (loss) attributable to Elizabeth Arden common shareholders (as determined in accordance with generally accepted accounting principles (GAAP)) as a measure of our operating performance or to net cash provided by operating 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, preferred stock accretion or dividends 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 without giving effect to Elizabeth Arden brand repositioning, 2014 Performance Improvement Plan, and restructuring and other non-recurring costs. This disclosure is being provided for comparability purposes because we believe it is meaningful to our investors and other interested parties to understand the EBITDA performance of the Company on a consistent basis without regard to the effect of Elizabeth Arden brand repositioning, 2014 Performance Improvement Plan, and restructuring and other non-recurring costs.

     The table below reconciles net (loss) income attributable to Elizabeth Arden common shareholders, as determined in accordance with GAAP, to EBITDA and to EBITDA as adjusted: (For a reconciliation of net income (loss) attributable to Elizabeth Arden common shareholders or net income (loss) 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).

(Amounts in thousands)

Three Months Ended

September 30,
2014

September 30,
2013

Net (loss) income attributable to Elizabeth Arden common shareholders

$

(45,796

)

$

1,697

Plus:

   Provision for income taxes

224

414

   Interest expense, net

7,756

6,032

   Depreciation related to cost of goods sold

1,999

1,830

   Depreciation and amortization

10,713

10,699

Net loss attributable to noncontrolling interest

(155

)

(109

)

Accretion and dividends on preferred stock

20,446

--

EBITDA

(4,813

)

20,563

Non-recurring costs (c) (d)

6,092

6,569

EBITDA as adjusted

$

1,279

$

27,132

     The table below reconciles net cash flow used in operating activities, as determined in accordance with GAAP, to EBITDA:

(Amounts in thousands)

Three Months Ended

September 30,
2014

September 30,
2013

Net cash used in operating activities

$

(107,875

)

$

(130,655

)

Changes in assets and liabilities, net of acquisitions

95,564

144,786

Interest expense, net

7,756

6,032

Amortization of senior note offering and credit facility costs

(421

)

(343

)

Amortization of senior note premium

200

--

Provision for income taxes

224

414

Deferred income taxes

1,052

1,935

Amortization of share-based awards

(1,252

)

(1,606

)

Asset impairments

(61

)

--

EBITDA

$

(4,813

)

$

20,563

(b)    The table below reconciles the calculation of (i) net sales, (ii) gross profit and net (loss) income attributable to Elizabeth Arden common shareholders and (iii) net (loss) income per share attributable to Elizabeth Arden common shareholders on a basic and diluted basis from the amounts reported in accordance with GAAP to such amounts before giving effect to Elizabeth Arden brand repositioning, 2014 Performance Improvement Plan, and restructuring other non-recurring costs. This disclosure is being provided for comparability purposes because we believe it is meaningful to our investors and other interested parties to understand our operating performance on a consistent basis without regard to the effect of Elizabeth Arden brand repositioning, 2014 Performance Improvement Plan, and restructuring other non-recurring costs. The presentation in the table below of the non-GAAP information titled "Net Sales as adjusted," "Gross profit as adjusted," "Net (loss) income attributable to Elizabeth Arden common shareholders as adjusted" and "Net (loss) income per basic and diluted share attributable to Elizabeth Arden common shareholders as adjusted" is not meant to be considered in isolation or as a substitute for net sales, gross profit, net (loss) income attributable to Elizabeth Arden common shareholders or net (loss) income per basic or diluted share attributable to Elizabeth Arden common shareholders prepared in accordance with GAAP.

(In thousands, except per share data)

Three Months Ended

September 30,
2014

September 30,
2013

Net Sales:

Net Sales as reported

$

270,378

$

343,609

Non-recurring costs (c)

2,679

--

Net Sales as adjusted

$

273,057

$

343,609

Gross Profit:

Gross Profit as reported

$

107,053

$

148,105

Non-recurring costs (c)(d)

2,716

3,772

Gross Profit as adjusted

$

109,769

$

151,877

Net (Loss) Income Attributable to Elizabeth Arden Common Shareholders:

Net (loss) income attributable to Elizabeth Arden common shareholders as reported

$

(45,796

)

$

1,697

Non-recurring costs, net of tax (c) (d) (e)

32,856

5,055

Net (loss) income attributable to Elizabeth Arden common shareholders as adjusted

$

(12,940

)

$

6,752

Net (Loss) Income Per Basic Share Attributable to Elizabeth Arden Common Shareholders:

Net (loss) income per basic share attributable to Elizabeth Arden common
   shareholders, as reported

$

(1.54

)

$

0.06

Non-recurring costs, net of tax (c) (d) (e)

1.11

0.17

Net (loss) income per basic share attributable to Elizabeth Arden common
   shareholders, as adjusted

$

(0.43

)

$

0.23

Net (Loss) Income Per Diluted Share Attributable to Elizabeth Arden Common Shareholders:

Net (loss) income per diluted share attributable to Elizabeth Arden common
   shareholders, as reported

$

(1.54

)

$

0.06

Non-recurring costs, net of tax (c) (d) (e)

1.11

0.16

Net (loss) income per diluted share attributable to Elizabeth Arden common
   shareholders, as adjusted

$

(0.43

)

$

0.22

(c)    For the three months ended September 30, 2014, net sales, gross profit and net loss attributable to Elizabeth Arden common shareholders include $2.7 million (pre-tax) of returns and markdowns under our 2014 Performance Improvement Plan. In addition, net loss also includes $3.4 million (pre-tax) in expenses under the 2014 Performance Improvement Plan, comprised primarily of severance and other employee-related expenses and transition costs, as well as a valuation allowance of $7.4 million against our U.S. deferred tax assets taken as a non-cash charge to income tax expense. In addition, net loss attributable to Elizabeth Arden common shareholders also includes $20.1 million of accretion for the change in redemption value related to the issuance of preferred stock in August 2014. We decided to recognize the accretion immediately and recorded the full accretion in the first quarter of fiscal 2015.

(d)    For the three months ended September 30, 2013, gross profit and net income includes $3.8 million (pre-tax) of non-recurring product changeover costs related to the repositioning of the Elizabeth Arden brand. In addition, net income also includes $2.4 million (pre-tax) of severance and other employee-related expenses and related transition expenses incurred with respect to the elimination of certain sales positions and other staff positions in the fall 2013, and $0.4 million (pre-tax) of non-recurring product changeover expenses related to the above mentioned repositioning.

(e)    Our effective tax rate on a reported basis for the three months ended September 30, 2014 and 2013, which is calculated as a percentage of income or loss before income taxes, was (0.9)% and 20.7%, respectively. On an adjusted basis, for the three months ended September 30, 2014 and 2013, our tax rate was 33.3% and 22.5%, respectively.

(In thousands)

Three Months Ended

% Increase (Decrease)

September 30,
2014

September 30,
2013

GAAP

Constant
Rates (1)

Segment Net Sales:

    North America

$

172,359

$

224,659

(23.3

)%

(23.1

)%

    International

100,698

118,950

(15.3

)%

(17.3

)%

Total

$

273,057

$

343,609

(20.5

)%

(21.1

)%

Reconciliation:

  Segment Net Sales

$

273,057

$

343,609

--

--

    Less:

       Unallocated sales returns and markdowns (2)

2,679

--

--

--

Net Sales

$

270,378

$

343,609

(21.3

)%

(21.9

)%

(In thousands)

Three Months Ended

% Increase (Decrease)

September 30, 2014

September 30, 2013

GAAP

Constant
Rates (1)

Product Category Net Sales:

    Elizabeth Arden Brand

$

100,051

$

120,524

(17.0

)%

(18.0

)%

    Celebrity, Lifestyle, Designer and
      Other Fragrances

170,327

223,085

(23.6

)%

(24.0

)%

Total

$

270,378

$

343,609

(21.3

)%

(21.9

)%

(In thousands)

Three Months Ended

% Increase (Decrease)

September 30, 2014

September 30, 2013

GAAP

Constant
Rates (1)

Product Category Net Sales:

    Elizabeth Arden Brand

$

102,432

$

120,524

(15.0

)%

(16.0

)%

    Celebrity, Lifestyle, Designer and
      Other Fragrances

170,625

223,085

(23.5

)%

(23.8

)%

Total

$

273,057

$

343,609

(20.5

)%

(21.1

)%

(1)    Constant currency information compares results between periods assuming exchange rates had remained constant period-over-period and excludes gains and losses from foreign currency contracts in all periods. We calculate constant currency information by translating current-period results using prior-year GAAP foreign currency exchange rates. The gains and/or losses from foreign currency contracts were not material for all periods presented.

(2)    Amount for the three months ended September 30, 2014, reflects returns and markdowns under our 2014 Performance Improvement Plan.

          The Securities and Exchange Commission encourages companies to disclose forward-looking information so that investors can better understand a company's future prospects and make informed investment decisions. This press release and other written and oral statements that we make from time to time contain such forward-looking statements that set out anticipated results based on management's plans and assumptions regarding future events or performance. We have tried, wherever possible, to identify such statements by using words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "will" and similar expressions in connection with any discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective products, future operating or financial performance or results of current and anticipated products, sales efforts, expenses and/or cost savings, interest rates, foreign exchange rates, the outcome of contingencies such as legal proceedings, and financial results. A list of factors that could cause our actual results of operations and financial condition to differ materially is set forth below, and these factors are discussed in greater detail under Item 1A -- "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended June 30, 2014:

*

our ability to implement our 2014 Performance Improvement Plan, our ability to realize the anticipated benefits of our 2014 Performance Improvement Plan and/or changes in the timing of such benefits;

*

whether we will incur higher than anticipated costs, expenses or charges related to the implementation of our 2014 Performance Improvement Plan or any additional restructuring or cost savings activities, and/or changes in the expected timing of such costs, expenses or charges;

*

decisions or actions resulting from our continued reexamination of our business, including implementing any additional restructuring activities, and the timing and amount of any costs, expenses or charges that may be incurred as a result, or the benefits anticipated to result from such decisions or actions;

*

our ability to realize benefits from the strategic investment made by affiliates of Rhône Capital L.L.C. in the Company;

*

factors affecting our relationships with our customers or our customers' businesses, including the absence of contracts with customers, our customers' financial condition, reduction in consumer traffic or demand, 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, disruptions in travel, unfavorable changes in U.S. or international laws or regulations, diseases and pandemics, and political instability in certain regions of the world;

*

our reliance on license agreements with third parties for the rights to sell most of our prestige fragrance brands;

*

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, raw materials and components for manufacturing of owned and licensed brands;

*

delays in shipments, inventory shortages and higher supply chain costs 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 retailer and/or consumer confidence and demand, such as domestic or international recessions or economic uncertainty;

*

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;

*

our ability to successfully manage our inventories;

*

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, (iii) successfully expand our geographic presence and distribution channels, and (iv) finance our growth strategy and our working capital requirements;

*

our level of indebtedness, our ability to realize sufficient cash flows from operations to meet our debt service obligations, preferred stock dividend requirements, and working capital requirements, and restrictive covenants in our revolving credit facility, second lien facility and the indenture for our 7 3/8% senior 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, laws or regulations relating to ingredients or other chemicals or raw materials contained in products or packaging, or accounting standards or critical accounting estimates;

*

the success of our global Elizabeth Arden brand repositioning efforts and global business strategy;

*

the impact of tax audits, including the ultimate outcome of the pending Internal Revenue Service examination of our U.S. federal tax returns for the fiscal years ended June 30, 2010, 2011 and 2012, changes in tax laws or tax rates, and our ability to utilize our deferred tax assets and/or the establishment of valuation allowances related thereto;

*

our ability to effectively implement, manage and maintain our global information systems and maintain the security of our confidential data and our employees' and customers' personal information, including our ability to successfully and cost-effectively implement the last phase of our Oracle global enterprise system;

*

our reliance on third parties for certain outsourced business services, including information technology operations, logistics management and employee benefit plan administration;

*

the potential for significant impairment charges relating to our trademarks, goodwill, investments in other entities or other intangible assets that could result from a number of factors, including such entities' or brands' business performance or downward pressure on our stock price; and

*

other unanticipated risks and uncertainties.

We caution that the factors described herein and other factors could cause our actual results of operations and financial condition 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.