Why Shares of Elizabeth Arden, Inc. Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Elizabeth Arden were looking delightful today, jumping as much as 17% and finishing up 12% on reports that it may be acquired.
So what: South Korea's LG Household said it was thinking about purchasing the cosmetics maker in an attempt to expand internationally, already having made four recent acquisitions of foreign companies. A company spokesman said Elizabeth Arden was a "potential option" for expansion. Elizabeth Arden, meanwhile, has been struggling of late as shares had fallen nearly 50% since last summer before today's news came out. North American sales have been particularly weak, and overall revenue fell 10.6% in its most recent quarter.
Now what: Elizabeth Arden did not comment on the news, but an interested buyer is obviously a positive sign for shareholders. There was no price range attached to the potential offer, but shares could rise in anticipation of a deal, as the timing seems right with LG looking to expand and Arden trying to re-energize its brand. You can add Elizabeth Arden to your Watchlist to stay on track of any developments with LG.
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The article Why Shares of Elizabeth Arden, Inc. Soared originally appeared on Fool.com.Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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