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What: Shares of Elizabeth Arden, (NASDAQ:RDEN) were heading north for the second day in a row today, gaining as much as 12% on reports that it's hired Goldman Sachs to help it find a buyer.
So what: The cosmetics-maker's stock jumped yesterday after a Korean company, LG Household, said it was potentially interested in buying it, and today, investors learned that Arden has been working with the investment bank on a sale, according to Reuters. Neither party commented on the matter, but a sale certainly seems like a strong possibility after twin reports have now emerged.
Now what: Elizabeth Arden's stock is now up 25% in the past two days, driving its market cap above $1 billion. The rumors of a possible sale come up at a time when the makeup company is struggling, having seen revenue fall in North America by 13% in its latest quarter. Analysts expect an overall decline in sales for the current fiscal year. With one potential buyer already known, the stock could continue to move higher as the company takes steps toward realizing a sale.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.