S&P could lower Elizabeth Arden

Standard & Poor's said it placed all of its ratings on Elizabeth Arden Inc., including the BB- corporate credit rating, on CreditWatch with negative implications.

The CreditWatch placement follows weak operating results for the fiscal year ended June 30. Sales decreased about 13% to $1.16 billion for fiscal 2014 compared with the prior fiscal year, stemming from weaker-than-expected declines from its celebrity fragrances segment and replenishment from the mass channel.

Profitability also decreased, mainly due to a highly competitive and promotional environment, and sales mix shift towards lower-margin products.

S&P estimates credit metrics have deteriorated, including leverage above 5 times. This is weaker than its expectation that leverage would remain below 4 times.

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