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Feb 5 (Reuters) - Elizabeth Arden Inc reported a bigger-than-expected 20 percent drop in quarterly revenue, citing lower sales of its celebrity fragrances and changes to the way its beauty products are distributed in China.
The company’s shares fell 7.7 percent after the bell.
Elizabeth Arden said a decline in sales of its celebrity fragrances, which include the Taylor Swift, Justin Bieber and Nicki Minaj brands, would continue to hurt the results of its North American business in the second half of the year to June.
Net sales in its fragrance business, which accounted for nearly 70 percent of the company’s net sales, fell 18 percent in the second quarter ended Dec. 31.
The company also raised its forecast for pre-tax restructuring charges in its current financial year to June 30 to $92 million-$99 million from $65 million-$72 million.
Some of these charges relate to changes to the company’s distribution strategy in China. In its results statement, the company did not give details of these changes.
Net loss attributable to Elizabeth Arden’s shareholders was $56.8 million, or $1.90 per share, for the second quarter ended Dec. 31, versus a profit of $35.0 million, or $1.16 per share, a year earlier.
Excluding items, the company reported a profit of 28 cents per share - its first after four straight loss-making quarters.
Net sales fell to $333.6 million from $418.1 million a year earlier.
Analysts on average had expected earnings of 59 cents per share on revenue of $366.5 million, according to Thomson Reuters I/B/E/S.
Larger rival Estee Lauder Cos Inc had a better holiday shopping quarter. Earlier on Thursday, it reported higher second-quarter revenue, helped by higher demand for its skin care and makeup products.
Elizabeth Arden’s shares were trading at $14.20 in extended trading, after closing at $15.38 on the New York Stock Exchange. (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Robin Paxton)