(Mark One)

[x]

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

For the quarterly period ended December 31, 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
February 3, 2005

Common Stock, $.01 par value

28,577,669 shares

PART I

FINANCIAL INFORMATION

Item 1.

Financial Statements

Page No.

Unaudited Consolidated Balance Sheets - December 31, 2004 and June 30, 2004

3

Unaudited Consolidated Statements of Operations - Three and six months ended December 31, 2004 and December 27, 2003

4

Unaudited Consolidated Statement of Shareholders' Equity - Six months ended December 31, 2004

5

Unaudited Consolidated Statements of Cash Flow - Six months ended December 31, 2004 and December 27, 2003

6

Notes to Unaudited Consolidated Financial Statements

7

Item 2.

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

26

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

35

Item 4.

Controls and Procedures

36

PART II

OTHER INFORMATION

Item 6.

Exhibits

37

Signatures

39

Exhibit Index

40

ELIZABETH ARDEN, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

As of

December 31,

June 30,

2004

2004

ASSETS

Current Assets

Cash and cash equivalents

$

34,311

$

23,494

Accounts receivable, net

197,974

102,306

Inventories

259,709

258,638

Deferred income taxes

4,351

16,723

Prepaid expenses and other assets

14,964

15,914

Total current assets

511,309

417,075

Property and equipment, net

39,388

37,198

Other Assets

Exclusive brand licenses, trademarks and intangibles, net

188,059

191,842

Debt financing costs, net

8,503

9,027

Deferred income taxes and other

8,285

8,544

Total other assets

204,847

209,413

Total assets

$

755,544

$

663,686

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Short-term debt

$

83,096

$

65,900

Accounts payable - trade

111,982

106,375

Other payables and accrued expenses

78,255

48,164

Current portion of long-term debt

--

4,764

Total current liabilities

273,333

225,203

Long-term debt

233,802

233,802

Other

3,090

2,621

Total long-term liabilities

236,892

236,423

Total liabilities

510,225

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; 28,514,054
  and 28,169,941 shares issued and outstanding, respectively

285

282

Additional paid-in capital

233,652

228,891

Retained earnings (accumulated deficit)

14,452

(22,057

)

Accumulated other comprehensive income

1,710

2,806

Unearned deferred compensation

(4,780

)

(7,862

)

Total shareholders' equity

245,319

202,060

Total liabilities and shareholders' equity

$

755,544

$

663,686

ELIZABETH ARDEN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Amounts in thousands, except per share data)

Three Months Ended

Six Months Ended

December 31, 2004

December 27, 2003

December 31, 2004

December 27, 2003

Net sales

$

322,951

$

296,256

$

535,107

$

495,241

Cost of sales (excludes depreciation of $704, $937, $1,370, and $1,861, respectively, included below)

181,348

173,309

303,993

294,045

Gross profit

141,603

122,947

231,114

201,196

Operating expenses

Selling, general and administrative

83,944

69,010

154,902

129,830

Depreciation and amortization

5,449

5,373

10,982

10,485

Total operating expenses

89,393

74,383

165,884

140,315

Income from operations

52,210

48,564

65,230

60,881

Other expense:

Interest expense, net

6,274

9,377

12,259

19,851

Debt extinguishment charges

--

9,446

--

9,446

Other expense, net

6,274

18,823

12,259

29,297

Income before income taxes

45,936

29,741

52,971

31,584

Provision for income taxes

14,210

8,536

16,462

9,064

Net income

31,726

21,205

36,509

22,520

Accretion and dividend on preferred stock

--

695

--

1,698

Accelerated accretion on converted preferred stock

--

18,584

--

18,584

Net income attributable to common shareholders

$

31,726

$

1,926

$

36,509

$

2,238

Net income per common share (See Note 2):

Basic

$

1.15

$

0.09

$

1.33

$

0.11

Diluted

$

1.06

$

0.09

$

1.23

$

0.11

Weighted average number of common shares:

Basic

27,519

22,166

27,430

20,283

Diluted

29,888

22,166

29,743

20,283

ELIZABETH ARDEN, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY

(Unaudited)

(Amounts in thousands)

Common Stock

Additional
Paid-in
Capital

Retained
Earnings
(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

308

3

3,012

3,015

Issuance of common stock for
  employee stock purchase plan

46

810

810

Other