Cosmetics company Elizabeth Arden Inc said it would exit low-return businesses and brands to improve gross margins and profitability, disappointing investors who had hoped for a sale of the company.

Shares of the company, known for its namesake perfume brand and skin care brands such as Ceramide and Prevage, fell as much as 7 percent at $26.30 in early trading on Tuesday.

The company said in May it was exploring strategic alternatives after reporting much weaker-than-expected quarterly results due to falling demand for its perfumes.

South Korea's LG Household & Healthcare Ltd said in April it was considering a bid for Elizabeth Arden, which had a market value of $841 million at the close of trading on Monday.

Elizabeth Arden said on Tuesday it would record a non-cash charge of $85-95 million for the fourth quarter ending June 30 related to the restructuring.

The company, which also sells celebrity fragrances Justin Bieber and Taylor Swift, said it would also cut jobs and close its Puerto Rico business.

The measures are expected to result in savings of $27 million-$35 million in 2014, Elizabeth Arden said.

The company, named after its owner who founded it in 1910, sells its products to retailers such as Wal-Mart Stores Inc , Target Corp and Macy's Inc.