Condensed Consolidated Quarterly and Interim Information


					Fiscal Quarter Ended
		June 30,			March 31,		December 31,				September 30,
*(Amounts in thousands except per share data)*		2016			2016			2015			2015
Net sales	$	192,651		$	191,932		$	316,199		$	265,951
Gross profit ⁽¹⁾		92,006			84,225			143,928			109,506
Loss from operations ⁽²⁾		(14,383	)		(19,865	)		3,001			(9,684	)
Net loss attributable to Elizabeth Arden
common shareholders ⁽³⁾		(23,778	)		(28,402	)		(5,611	)		(16,580	)
Loss per common share attributable to
Elizabeth Arden common shareholders:
Basic and Diluted ⁽³⁾	$	(0.79	)	$	(0.95	)	$	(0.19	)	$	(0.56	)

(1)	For the year ended June 30, 2016, gross profit and loss from operations includes $6.5 million of inventory costs under our 2016 Business Transformation Program primarily related to the closing of our Brazilian affiliate, as well changes in certain distribution and customer arrangements.
(2)	In addition to the item above in Note 1, loss from operations includes:
	· $14.9 million in expenses under the 2016 Business Transformation Program, primarily comprised of severance and

other employee-related expenses and related transition costs;

· $0.5 million for the acceleration of depreciation expense for leasehold improvements related to leased space vacated

under the 2016 Business Transformation Program; and

· $2.0 million for costs incurred related to the pending Revlon Merger.

(3)

Net loss includes items discussed in Notes 1 and 2 above, as well as valuation allowances recorded as a non-cash charges to income tax expense, comprised of $14.6 million against the Company's U.S. deferred tax assets and $3.9 million against the Company's deferred taxes in certain foreign operations.

Condensed Consolidated Quarterly and Interim Information


				Fiscal Quarter Ended
	June 30,			March 31,	December 31,			September 30,
*(Amounts in millions)*	2016			2016	2015			2015
2016 Business Transformation Program:
Inventory costs	$	2.1	$	0.5	$	0.6	$	3.3
Restructuring and related transition expenses		2.0		1.8		6.0		5.1
Depreciation expense related to vacated leased space		0.2		0.1		0.1		0.1
Revlon Merger transaction costs		2.0		—		—		—
Total	$	6.3	$	2.4	$	6.7	$	8.5


					Fiscal Quarter Ended
		June 30,			March 31,		December 31,				September 30,
*(Amounts in thousands except per share data)*		2015			2015			2014			2014
Net sales ⁽¹⁾	$	175,460		$	191,653		$	333,607		$	270,378
Gross profit ⁽²⁾		19,076			79,638			142,885			107,053
Loss from operations ⁽³⁾		(96,113	)		(27,372	)		(48,115	)		(17,525	)
Net loss attributable to Elizabeth Arden
common shareholders ⁽⁴⁾		(108,691	)		(35,061	)		(56,778	)		(45,796	)
Loss per common share attributable to
Elizabeth Arden common shareholders:
Basic and Diluted ⁽⁴⁾	$	(3.65	)	$	(1.18	)	$	(1.90	)	$	(1.54	)

(1)	For the year ended June 30, 2015, net sales includes include $28.2 million of returns and markdowns under our 2014 Performance Improvement Plan primarily due to changes (i) our distribution strategy in China, (ii) pricing and distribution strategies for certain fragrance products, and (iii) other customer and distribution arrangements.
(2)	In addition to the returns and markdowns described above in Note 1 above, gross profit and loss from operations includes $53.2 million of inventory write-downs under our 2014 Performance Improvement Plan due primarily to changes in pricing and distribution strategies for certain fragrance products, and the discontinuation of certain products.

(3) In addition to the items in Notes 1 and 2 above, loss from operations includes:

· $13.2 million in expenses under the 2014 Performance Improvement Plan primarily comprised of $8.5 million of

customer and vendor contract termination costs, $4.5 million of severance, other employee-related expenses and related

transition costs associated with the reduction in global headcount positions, and $0.2 million in asset impairment charges;

· $43.8 million in asset impairment charges primarily related to the write off of the Justin Bieber and Nicki Minaj licenses and other costs;

· $2.4 million in expenses under the 2016 Business Transformation Program primarily comprised of $1.6 million of

severance and other employee-related costs and approximately $0.8 million in lease termination costs; and

· $0.2 million of debt extinguishment costs resulting from the December 2014 amendment to the Company's Credit Facility.

(4)

Net loss includes items discussed in Notes 1, 2 and 3 above, as well as valuation allowances recorded as a non-cash charges to income tax expense, comprised of $51.9 million against the Company's U.S. deferred tax assets and $6.9 million against the Company's deferred taxes in certain foreign operations. Net loss also includes $20.2 million in accretion, recorded during the first quarter of fiscal 2015, for the change in redemption value related to the issuance of preferred stock

Condensed Consolidated Quarterly and Interim Information


			Fiscal Quarter Ended
*(Amounts in millions)*	June 30,		March 31,			December 31,			September 30,
	2015		2015			2014			2014
2014 Performance Improvement Plan:
Returns and markdowns	$	13.2	$	(0.3	)	$	12.6	$	2.7
Inventory write-downs		48.3		0.3			4.6		—
Asset impairments and related charges		0.1		—			—		0.1
Restructuring and related transition expenses, and contract
termination costs		4.1		0.2			5.4		3.3
Asset impairments		—		—			43.8		—
Restructuring expenses and lease termination costs		2.4
Debt extinguishment costs		—		—			0.2		—
Total	$	68.1	$	0.2		$	66.6	$	6.1