Elizabeth Arden’s fiscal Q3 2015 results reveal a mixed picture where the Elizabeth Arden brand is progressively regaining its status, posting growth in both North America and internationally. Distribution tightening and promoting the brand’s heritage remain key winning formulas.
On the other hand, the continued haemorrhage in celebrity fragrances sales reflects the decreasing relevancy of these brands to consumers. Improving gross margins necessitates that the company prioritises value over volume, which points to a need to shift emphasis from its celebrity lines to higher-image lines such as premium fashion brands. The licensing agreement with designer brand Wildfox Couture to develop its first fragrances line in 2015 is potentially a commercially-rewarding move.

Nicholas Micallef
Industry Analyst at Euromonitor International