(Mark One)

[x]

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2004

[ ]

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission file number 1-6370

ELIZABETH ARDEN, INC.

(Exact name of registrant as specified in its charter)

Florida

59-0914138

(State or other jurisdiction of incorporation
or organization)

(I.R.S. Employer
Identification No.)

14100 N.W. 60th Avenue, Miami Lakes, Florida

33014

(Address of principal executive offices)

(Zip Code)

(305) 818-8000

(Registrant's telephone number, including area code)

     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes  [X]      No  [  ]

     Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).     Yes  [X]      No  [  ]

     Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date:

Class

Outstanding at
November 5, 2004

Common Stock, $.01 par value

28,343,257 shares

PART I

FINANCIAL INFORMATION

Item 1.

Financial Statements

Page No.

Unaudited Consolidated Balance Sheets - September 30, 2004 and June 30, 2004

3

Unaudited Consolidated Statements of Operations - Three months ended September 30, 2004 and September 27, 2003

4

Unaudited Consolidated Statement of Shareholders' Equity - Three months ended September 30, 2004

5

Unaudited Consolidated Statements of Cash Flow - Three months ended September 30, 2004 and September 27, 2003

6

Notes to Unaudited Consolidated Financial Statements

7

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4.

Controls and Procedures

31

PART II

OTHER INFORMATION

Item 6.

Exhibits

32

Signatures

34

Exhibit Index

35

ELIZABETH ARDEN, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

As of

September 30,

June 30,

2004

2004

ASSETS

Current Assets

Cash and cash equivalents

$

20,532

$

23,494

Accounts receivable, net

188,701

102,306

Inventories

303,987

258,638

Deferred income taxes

15,314

16,723

Prepaid expenses and other assets

15,272

15,914

Total current assets

543,806

417,075

Property and equipment, net

36,390

37,198

Other Assets

Exclusive brand licenses, trademarks and intangibles, net

189,977

191,842

Debt financing costs, net

8,412

9,027

Deferred income taxes and other

8,541

8,544

Total other assets

206,930

209,413

Total assets

$

787,126

$

663,686

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Short-term debt

$

152,000

$

65,900

Accounts payable - trade

131,679

106,375

Other payables and accrued expenses

58,049

48,164

Current portion of long-term debt

--

4,764

Total current liabilities

341,728

225,203

Long-term debt

233,802

233,802

Other

2,977

2,621

Total long-term liabilities

236,779

236,423

Total liabilities

578,507

461,626

Commitments and contingencies (See Note 8)

Convertible, redeemable preferred stock, Series D, $.01 par value   559,873 shares authorized; no shares issued and outstanding

--

--

Shareholders' Equity

Common stock, $.01 par value, 50,000,000 shares authorized;   28,239,345 and 28,169,941 shares issued and outstanding,   respectively

282

282

Additional paid-in capital

229,658

228,891

Accumulated deficit

(17,274

)

(22,057

)

Accumulated other comprehensive income

2,172

2,806

Unearned deferred compensation

(6,219

)

(7,862

)

Total shareholders' equity

208,619

202,060

Total liabilities and shareholders' equity

$

787,126

$

663,686

ELIZABETH ARDEN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Amounts in thousands, except per share data)

Three Months Ended

September 30,

September 27,

2004

2003

Net sales

$

212,156

$

198,985

Cost of sales (excludes depreciation of $666 and $925, respectively,
  included below)

122,645

120,736

Gross profit

89,511

78,249

Operating expenses:

Selling, general and administrative

70,959

60,820

Depreciation and amortization

5,533

5,112

        Total operating expenses

76,492

65,932

Income from operations

13,019

12,317

Interest expense, net

5,985

10,474

Income before income taxes

7,034

1,843

Provision for income taxes

2,251

528

Net income

4,783

1,315

Accretion and dividend on preferred stock

--

1,003

Net income attributable to common shareholders

$

4,783

$

312

Net income per common share (See Note 2):

Basic

$

0.17

$

0.02

Diluted

$

0.16

$

0.02

Weighted average number of common shares:

Basic

27,340

18,033

Diluted

29,598

18,033

ELIZABETH ARDEN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

(Unaudited)

(Amounts in thousands)

Common Stock

Additional Paid-in Capital

Accumulated Deficit

Accumulated Other Comprehensive Income

Unearned Deferred Compensation

Total Shareholders' Equity

Shares

Amount

Balance at June 30, 2004

28,170

$

282

$

228,891

$

(22,057

)

$

2,806

$

(7,862

)

$

202,060

Issuance of common stock
  upon exercise of stock
  options

74

--

891

--

--

--

891

Other

--

--

(71

)

--

--

--

(71

)

Forfeitures of restricted stock

(5

)

--

(53

)

--

--

53

--

Amortization of unearned
  deferred compensation, net of
  forfeitures

--

--

--

--

--

1,590

1,590

Comprehensive income:

Net income

--

--

--

4,783

--

--

4,783

Foreign currency translations

--

--

--

--

(70

)

--

(70

)

Unrealized cash flow
  hedging loss, net of taxes

--

--

--

--

(564

)

--

(564

)

Total comprehensive income

--

--

--

4,783

(634

)

--

4,149

Balance at September 30, 2004

28,239

$

282

$

229,658

$

(17,274

)

$

2,172

$

(6,219

)

$

208,619

ELIZABETH ARDEN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOW

(Unaudited)

(Dollars in thousands)

Three Months Ended

September 30,

September 27,

2004

2003

Operating Activities:

Net income

$

4,783

$

1,315

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization

5,533

5,112

Amortization of senior note offering costs and note premium

617

798

Amortization of unearned deferred compensation

1,590

690

Deferred income taxes

1,412

--

Changes in assets and liabilities:

Increase in accounts receivable

(86,395

)

(63,425

)

Increase in inventories

(45,349

)

(11,813

)

Increase in prepaid expenses and other assets

(202

)

(930

)

Increase in accounts payable

25,304

2,420

Increase in other payables and accrued expenses