Net sales for the quarter were $393.3m, but this figure was positively impacted by currency translations; taking this into account sales gains were up by just 3.3 percent.
The sales gains were particularly noteworthy as Elizabeth Arden is positioned at the top end of the beauty market, an area that has been hard hit by the global economic downturn.
Sales gains and restructuring boost profits
On the back of the sales gains net profits also increased significantly, up nearly 51 percent to $21.05m, compared to $13.66m in the corresponding period last year.
The sales and profit figures beat financial analysts' expectations, but whereas the company raised its projections for cash flow from operations for the full year, it said it was sticking with earlier sales forecasts.
CEO Scott Beattie said he was pleased with the gains seen during the quarter, but stressed that he remained cautious in view of the continuing uncertainty in retail markets worldwide.
Asia Pacific strong, North America mixed
Beattie underlined the fact that sales in its Asia Pacific region had grown by an impressive 19 percent during the quarter, but he also stressed that the performance in the North America market had been mixed.
“Although we saw revenues accelerate during the second quarter, our retailers are still managing inventories conservatively and as such we are still using caution regarding our second half revenue projections,” he said.
As the fiscal year 2010 continues the company is expected to concentrate its efforts in further growing both its international and travel retail sales – the two areas that saw the biggest increases during the first quarter.