Shares in cosmetics manufacturer Elizabeth Arden are said to have dived by up to 23% – the sharpest fall in five years – after the company reported an unexpected loss.
As reported by the BBC, the company’s sales fell by 20% to $ 211 million due to weak demand in North America and heavy discounting overseas. It has reportedly hired investment bank Goldman Sachs to investigate.
According to E Scott Beattie, Elizabeth Arden’s chief executive, the results were “disappointing” and were a reflection of a “challenging” economic environment. In a statement, he said: “Clearly these results are not indicative of the strength and potential of our brand portfolio; we fully recognize that we have a lot of work to do”.
Elizabeth Arden is said to have also closed stores last quarter and now plans to implement “a broad restructuring and cost savings program” aimed at saving up to $50m a year.