Elizabeth Arden, Liz Claiborne sign long-term fragrance deal
NEW YORK Elizabeth Arden and Liz Claiborne have entered an exclusive long-term global licensing deal for Liz Claiborne fragrance brands. Terms of the deal were not disclosed.
The Liz Claiborne fragrance portfolio consists of such products as Juicy Couture, Usher, Curve by Liz Claiborne, Lucky Brand and the Liz, Realities, Bora Bora and Mambo fragrances.
According to E. Scott Beattie, chairman, president and chief executive officer of Elizabeth Arden, the deal will allow the company to benefit from improved market share and productivity in its North American fragrance business, gain efficiencies from a larger fragrance business, increase gross margins and bolster sales volume of its international business.
For Liz Claiborne, the transaction will enable it to maximize profitability going forward. “Through this partnership with Elizabeth Arden, we can continue to successfully develop and market brand enhancing fragrances in a more capital efficient manner, leveraging our strength in brand building with Arden’s expertise in developing and growing fragrance businesses,” stated William McComb, chief executive officer of Liz Claiborne.
Liz Claiborne expects the transaction to have a positive impact on its 2008 cash flows and to have no impact on 2008 projected adjusted EPS and operating margin. Looking forward to 2009 and beyond, the company expects the impact of the royalty income to be accretive to both EPS and operating margin.
Elizabeth Arden expects the deal to contribute to both net sales and earnings growth in fiscal 2009. It expects to incur advertising and marketing expenses paid by Liz Claiborne and other transaction related expenses during the fourth quarter of fiscal 2008 and the first half of fiscal 2009. Elizabeth Arden expects its gross margins to be impacted in the fourth quarter of fiscal 2008 and through the first half of fiscal 2009 by the sale of Liz Claiborne inventory that Elizabeth Arden acquired prior to the effective date as a distributor. After the full impact of these costs, Elizabeth Arden expects the deal to be accretive to earnings in the first half of fiscal 2009.
Revlon announces plans to regain NYSE compliance
NEW YORK Beauty company Revlon announced on Friday that plans to regain compliance with the New York Stock Exchange’s criteria of $1 per share average closing price over 30 consecutive trading days through its pending reverse stock split.
As previously reported in its April 11, 2008 current report on Form 8-K filed with the SEC, the company was advised by the New York Stock Exchange in April 2008 that the price of its Class A common stock was below the NYSE’s price criteria, requiring at least a $1 per share average closing price over 30 consecutive trading days. The company’s Class A common stock continues to be listed on the NYSE.
In April 2008, Revlon advised the NYSE that its board of directors and stockholders had already approved a 1-for-10 reverse stock split of Revlon’s Class A and Class B common stock and that it intended to regain compliance with the NYSE’s price criteria, by, among other things, implementing the split.
Revlon has six months following the April 2008 notification to bring its share price and 30 trading day average share price to $1 or above, during which time the company’s Class A common stock will continue to be listed on the NYSE.
Barrier, P&G to combine dandruff shampoo with dermatitis treatment
PRINCETON, N.J. Barrier Therapeutics, a manufacturer of dermatology products has signed a deal to combine Procter & Gamble’s dandruff shampoo Head & Shoulders with its dermatitis treatment Xolegel, according to the Associated Press.
The new kit will be called Xolegel Duo and is expected to be available by prescription in June.
Under the terms of the agreement, Procter & Gamble will supply small bottles of the shampoo to Barrier who in turn, will be responsible for producing the kits and selling them. As a result, Barrier will receive all profits from sales of Xolegel Duo.