Reference case study "Elizabeth Arden: Executing Global Supply Chain Re-engineering" David Wood; Norman Gao

Calculate the total financial impact for the re-engineering effort. What does this mean for Elizabeth Arden and its shareholders?

EXHIBIT 3: SELECT FINANCIAL DATA (IN $ THOUSANDS) Years Ended June 30, 2007 2006 2005 Selected Statement of Income Data Net Sales* Gross Profit Income (loss) from operations Debt extinguishment charges Net income (loss) Accretion and dividend on preferred stock Accelerated accretion on converted preferred stock Net income (loss) attributable to common shareholders $1,127,476 $461,319 $74,006 $- $37,334 $954,550 $404,072 $68,257 $758 $32,794 $920,538 $411,364 $78,533 $37,604 $- $32,794 $37,334 $37,604 Selected Per Share Data Earnings (loss) per common share Basic Diluted Weighted average number of common shares Basic Diluted $1.35 $1.30 $1.15 $1.10 $1.35 $1.25 27,607 28,826 28,628 29,818 27,792 30,025 Other Data EBITDA** Net cash from operating activities Net cash from investing activities Net cash provided by (used in) financing activities $98,524 $58,816 $110,518 $53,120 $89,608 $65,276 $24,335 $(37,584) $100,038 $35,549 $17,508 $(15,785) Years Ended June 30, 2007 2006 2005 Selected Balance Sheet Data Cash $30,287 $28,466 $25,316 Inventories $380,232 $569,270 $273,343 Working capital $298,165 $280,942 $275,628 Total assets $939, 175 $759,903 $719,897 Short-term Debt $97,640 $40,000 $47,700 Long-term-debt, including current portion $225,655 $225,951 $233,802 Convertible, redeemable preferred stock $- $- $- Shareholder's equity $320,927 $277,847 $259,200 * Comparison of U.S. and international net sales = 63:37 (2007), 60:40 (2006), 62:38 (2005). ** EBITDA: earnings before interest, taxes, depreciation, and amortization Source: Company files. EXHIBIT 3: SELECT FINANCIAL DATA (IN $ THOUSANDS) Years Ended June 30, 2007 2006 2005 Selected Statement of Income Data Net Sales* Gross Profit Income (loss) from operations Debt extinguishment charges Net income (loss) Accretion and dividend on preferred stock Accelerated accretion on converted preferred stock Net income (loss) attributable to common shareholders $1,127,476 $461,319 $74,006 $- $37,334 $954,550 $404,072 $68,257 $758 $32,794 $920,538 $411,364 $78,533 $37,604 $- $32,794 $37,334 $37,604 Selected Per Share Data Earnings (loss) per common share Basic Diluted Weighted average number of common shares Basic Diluted $1.35 $1.30 $1.15 $1.10 $1.35 $1.25 27,607 28,826 28,628 29,818 27,792 30,025 Other Data EBITDA** Net cash from operating activities Net cash from investing activities Net cash provided by (used in) financing activities $98,524 $58,816 $110,518 $53,120 $89,608 $65,276 $24,335 $(37,584) $100,038 $35,549 $17,508 $(15,785) Years Ended June 30, 2007 2006 2005 Selected Balance Sheet Data Cash $30,287 $28,466 $25,316 Inventories $380,232 $569,270 $273,343 Working capital $298,165 $280,942 $275,628 Total assets $939, 175 $759,903 $719,897 Short-term Debt $97,640 $40,000 $47,700 Long-term-debt, including current portion $225,655 $225,951 $233,802 Convertible, redeemable preferred stock $- $- $- Shareholder's equity $320,927 $277,847 $259,200 * Comparison of U.S. and international net sales = 63:37 (2007), 60:40 (2006), 62:38 (2005). ** EBITDA: earnings before interest, taxes, depreciation, and amortization Source: Company files