Elizabeth Arden expects weak 2008 amid difficult environment

NEW YORK—Beauty-products maker Elizabeth Arden Inc. on Thursday said it expects weak demand in North America and the U.K. for the rest of the year and lowered its fiscal 2008 earnings guidance.

The New York company now predicts earnings of $1.30 to $1.36 per share. Previously the company forecast profit of $1.65 to $1.75 per share. Analysts, on average, estimate profit at $1.67 per share, according to a poll by Thomson Financial.

The company expects sales to rise 1 percent to 2 percent, implying sales of $1.14 billion to $1.15 billion. Analysts expect revenue of $1.17 billion.

Elizabeth Arden is implementing a restructuring program to reengineer its extended supply chain functions and implement a transaction-processing system over the next 18 to 24 months. The plan will save $10 million to $12 million in fiscal 2009 and $13 million to $15 million in fiscal 2010, the company said.

It will cost $12 million to $14 million including $1.4 million recorded in the fourth quarter of fiscal 2008.

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