Yes, Taylor Swift and Justin Bieber have quite the following. The problem for Elizabeth Arden, the beauty products company, is that following lacks serious disposable income. Young people may want to smell like Taylor Swift, but older adults shun celebrity fragrance lines.

Shares of Elizabeth Arden are taking it on the chin today, losing as much as 25% in value. The company reported that sales fell 28.4 percent, the most in a decade. The company also guiding lower, warning that sales weakness would continue for at least the next six months.

Company executives are placing the sales decline squarely on once popular celebrity fragrance lines. They expressly singled out the Bieber and Taylor Swift lines. I’m pretty sure Bieber prefers a smoky fragrance with undertones of cannabis. Just a guess.

Arden had five of the top 10 celebrity fragrance lines in the United States. Sounds great for a press release, but the overall market for such fragrances is shrinking fast. Elizabeth Arden is more susceptible to the trend, as most of their sales come from fragrance lines. Other beauty products companies such a L’Oreal are less exposed thanks to cosmetics.

The only support for the stock is the infusion of cash from Rhone Capital. That money is supporting a base on what would otherwise be an even steeper drop. The company will have to shift away from celebrity fragrance lines in the future. The youth unemployment rate is causing the company sales to suffer.

Arden is stuck with its marketing of young fragrance lines to a subset of the population that is still dealing with an anemic jobs recovery.

Currently, RDEN is down 23%. The stock essentially gapped lower and continues to trade in the range of the initial move to the downside.

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