Shares of Elizabeth Arden plunged more than 20% in Tuesday pre-market trading after the cosmetics and perfume maker posted a much-wider quarter loss on tumbling sales.
During its fiscal third quarter, RDEN reported a net loss of $26.4 million. In the year-ago period it recorded a loss of just $1.3 million. Adjusted EPS showed a loss of 84 cents a share. That disappointed Wall Street, which had forecast RDEN to break even for the quarter, Reuters notes.
RDEN said it generated sales of $210.8 million, down 20% from the prior-year quarter, and far below the sales of $256.86 million that analysts had estimated. North American sales sank 23% during the quarter.
Elizabeth Arden indicated that it is restructuring operations and launching a program to slash expenses. It hopes to save between $40 million and $50 million. RDEN has also retained Goldman Sachs (GS) to help evaluate strategic options.
On Monday, Elizabeth Arden stock closed at $35.63 per share.
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