Slower fragrance sales across select mass market retailers severely dampened Elizabeth Arden’s second quarter results. However the company hit a high note with distribution of Our Moment from boy band One Direction where it emerged as a bestseller in the prestige sector. NPD tagged Our Moment as the second best performing fragrance launch for 2013.

The Elizabeth Arden brand was also a bright spot, with sales in North America up 4% in the quarter, outpacing the category. Flagship doors equipped with Arden’s new counter saw sales rise 16% in North America and 13% internationally since conversion. The installation at the remodeled Macy’s Herald Square triggered a 27% jump. Product news for the year will include extensions for the Untold fragrance and a skin care item targeting “the first signs of aging,” said Kathy Widmer, Executive Vice President, Chief Marketing Officer.

Overall company net sales for the quarter ended December 31 fell 10.6% to $418 million. North America drove the decline with a 13% drop. Net income slid to $32.6 million from $48 million, with net income per diluted share of $1.08 down from $1.58.

“It was obviously disappointing and below our expectations,” said E. Scott Beattie, President and CEO. “The results of 2014 did not reflect “the strength of our brands” or “our organizational capability.”

The U.S. mass fragrance business “isn’t structurally impaired, but had weak performance due to macro economic conditions,” said Scott. Decreased customer traffic at large mass retailers and tightened disposable income among middle and lower income shoppers are being blamed. Slower sales on its high margin basic stock scents impacted results.

According to data provider IRI, sales of mass fragrance in 2013 dropped 6% to under $800 million, the lowest the category has seen sales in years.

“The retail sales trends were very uneven among retailers,” commented Joel Ronkin, General Manager of North America, “some retailers did very well.”

Joel said he is working with retailers on an individual basis to sharpen programs. An overarching focus is to increase awareness of the prestige brands it sells in the mass market. In some stores less than 50% of shoppers know these items exist. “We are looking to increase that,” said Joel. “We want to take advantage of the traffic that is there.”

Although a much smaller piece of its business, Arden’s international fragrance sales also slowed due to intense promotional activity. Eric Lauzat, Executive Vice President, International has reorganized his team into regional areas of responsibility to improve performance.