95052--9/10/2007--ELIZABETH_ARDEN

related topics

{operation, international, foreign}

{condition, economic, financial}

{acquisition, growth, future}

{product, candidate, development}

{customer, product, revenue}

{operation, natural, condition}

{property, intellectual, protect}

{product, market, service}

{system, service, information}

{competitive, industry, competition}

{personnel, key, retain}

{debt, indebtedness, cash}

{stock, price, operating}

We do not have contracts with customers or most of our suppliers, so if we cannot maintain and develop relationships with customers and suppliers our business, prospects, results of operations and financial condition may be materially adversely affected. We rely on third-party manufacturers for substantially all of our owned and licensed products. The loss of or disruption in our distribution facilities may have a material adverse effect on our business. We may be adversely affected by factors affecting our customers businesses. We may be adversely affected by domestic and international economic conditions and other events that impact consumer confidence and demand. The beauty industry is highly competitive and if we cannot effectively compete our business and results of operations will suffer. Our business strategy depends upon our ability to acquire or license additional brands or secure additional distribution arrangements and obtain the required financing for these agreements and arrangements. The success of our business depends, in part, on the demand for celebrity beauty products. We may not be able to successfully and cost-effectively integrate acquired businesses or new brands. Our business could be adversely affected if we are unable to successfully protect our intellectual property rights. We are subject to risks related to our international operations. Fluctuations in foreign exchange rates could adversely affect our results of operations and cash flows. Our quarterly results of operations fluctuate due to seasonality and other factors, and we may not have sufficient liquidity to meet our seasonal working capital requirements. Our level of debt and debt service obligations, and the restrictive covenants in our revolving credit facility and our indenture for our 7 3 / 4 % senior subordinated notes, may reduce our operating and financial flexibility and could adversely affect our business and growth prospects. Our success depends, in part, on the quality, efficacy and safety of our products. Our success depends upon the retention and availability of key personnel and the succession of senior management. Our business is subject to regulation in the United States and internationally. The market price of our common stock may fluctuate as a result of a variety of factors. We are subject to risks associated with our reliance on global information systems.

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95052--9/10/2007--ELIZABETH_ARDEN_INC