Elizabeth Arden, Inc. recently announced that its Chief Financial Officer, Stephen Smith, has resigned to join The Hain Celestial Group, Inc. (HAIN - Free Report) , a leading organic and natural products company.
Mr. Smith, CFO and Executive Vice president of Elizabeth Arden, served the makeup and skin care company for the past 12 years. His extensive experience in working with consumer products companies has helped in building a strong finance and accounting team. He will join Hain on Sep 3, replacing the current CFO, Ira J. Lamel, whose retirement was announced last September.
Smith announced his decision just a week after Elizabeth Arden released dismal fourth-quarter and fiscal 2013 results.
Elizabeth Arden’s fiscal fourth-quarter earnings per share of 10 cents missed the Zacks Consensus Estimate by 68.8% and the year-ago earnings by 64.3% due to lower revenues and poor margins. Revenues rose only 0.8% to $267.9 million but missed the Zacks Consensus Estimate of $289 million.
The fiscal 2013 earnings and revenues also missed the Zacks Consensus Estimate and fell short of the company’s expectations. The company’s growth expectations for the Elizabeth Arden brand – one of the most widely recognized beauty brands in the world – proved to be too optimistic leading the company to perform below expectations in the year.
Additionally, lower-than-expected orders from one of the largest North American mass retail customers and weakness in Europe, especially in the U.K., pulled down revenues in both the fourth quarter and fiscal 2013.
In addition, Elizabeth Arden issued a relatively weak outlook for fiscal 2014. For full year 2014, sales are expected to grow between 3.0% and 5.0% year over year, much lower than the fiscal 2013 growth. Earnings are expected in the range of $2.15 to $2.30, representing approximately 4% growth at the mid-point.
Other Stocks to Consider
Elizabeth Arden carries a Zacks Rank #5 (Strong Sell). Other companies in the cosmetics industry that are currently doing well include Inter Parfums Inc. (IPAR - Free Report) and Nu Skin Enterprises Inc. (NUS - Free Report) . Both IPAR and NUS carry a Zacks Rank #1 (Strong Buy).