Women of a certain age and socio-economic demographic know Elizabeth Arden Inc. (NASDAQ: RDEN) as a purveyor of prestige beauty products and luxurious day spas. Fortunately for the company, many of those women live outside the U.S. and have yet to be affected by the slowdown in consumer spending. International growth for the company increased 20%, while net sales in the U.S., including the December holiday pampering season, declined 0.5% with weak holiday sales at upscale department stores.

Boosted by international sales, net income increased $8.9 million to $33.8 million, or $1.15 per share. Despite the soft holiday quarter reported January 31, the company is sticking with its previous guidance of diluted EPS $1.65-1.75, up $0.29-0.39 over FY2007. Net sales are forecast to increase in the low single digits -- not the most dramatic forecast.

Elizabeth Arden is tightening its supply chain and increasing the sale of higher profit margin products in its international markets. The company will introduce new fragrance brands in 2008, including the fragrance M by Mariah Carey to appeal to younger customers. Investors do not seem to be much impressed with these new initiatives. The stock has dropped almost 6% over the weekend.

The Estee Lauder Companies Inc. (NYSE: EL) made the Wall Street Journal (subscription required) on Tuesday as the company that had a rise in stock price but the largest outflow of money. Perhaps now that the company's IRS problems are behind it and all sectors are showing profits, insiders want to take their share of the profits. The news from the company's 4Q and FY 2007 report is very positive. All product categories in all regions increased sales, though the increases in the U.S. were the smallest. FY sales topped out at over $7 billion, FY net earnings from continuing operations rose $124 million to $448.7 million, and FY diluted EPS increased 45% to $2.16. Numbers for just 4Q 2007 were as good. EPS of $0.45 was double that of 4Q 2006 when the company was embroiled in tax problems.

Whether organized by geographic region or product category, sales and earnings are headed in the right direction. Estee Lauder is increasing its sales channels to include a larger internet presence, more products in European pharmacies, as well as moving into direct-response television advertising. This sales reorganization comes at the cost of $30 million for discontinuing slow selling and lower profit margin items, as well as reconfiguring an international distribution network. The strategy seems to be working as makeup, fragrance, and hair care sales are up 11% in Asia, 10% in Europe and the Middle East, and 3% in the U.S.

Operating cash flow declined significantly, due primarily to stock repurchases. CEO William Lauder forecasts that 1Q 2008 sales will grow 5-7%, and FY 2008 sales growth will be 7%-9%. Diluted EPS will be $2.28-2.40 with hair care products being the biggest seller. The stock currently trades right around $40.00.