Online Exclusives

With Guess, Parlux has the Answer

February 29, 2008

Parlux continues to build on its Guess franchise with the rollout of Guess by Marciano.

 

 

With Guess, Parlux has the Answer


Parlux continues to build on its Guess franchise with the rollout of Guess by Marciano.



By Tom Branna
Editorial Director



While other marketers grapple with the hangover of poor holiday sales and prospects of a recession looming, Parlux Fragrance CEO Neil Katz is confident that the company has the right mix of product and strategy to weather anything the economy throws his way.


This Spring, Parlux will launch Guess by Marciano, which the company bills as a spicy floral. Top notes include star fruit, grapefruit, Curacao orange and cardamom. The heart is made up of peony, pink honeysuckle and crystal jasmine, followed by a drydown of blonde wood, vanilla, dulce de leche and musk.


A 3.4oz. EDP spray retails for $65. The collection also includes 1.7oz EDP, body lotion and body butter. All of them are expected to appeal to the typical Guess shopper, a woman 20-24 years old.

On a Roll



The rollout comes at a time when Parlux is virtually on a roll. Full year results won’t be released until next month, but Mr. Katz noted that the company is making progress on several fronts including improved relations with shareholders, auditors, the Securities and Exchange Commission, licensees and retailers.

   
For the nine months, Parlux posted operating income of more than $3.9 million, compared to an operating loss of  $29 million the previous year.

   
“We had a nice increase in profit,” understated Mr. Katz.

   
During that time, sales rose 15% to $113.2 million. That gain was attributed to an increase of nearly $30 million in gross sales of Paris Hilton fragrance brands that included the September launch of the new Can Can fragrance, which generated gross sales of $5.5 million.

   
“We’re doing the things we need to do to market brands,” explained Mr. Katz. “Good advertising and public relations led to a significant increase in profits and that’s what shareholders paid for.”

More Work to be Done



Although Mr. Katz is pleased with the turnaround at Parlux, he noted that more work needs to be done. On the new product front, the company is eager to launch new scents under Jessica Simpson and Nicole Miller licenses.

   
At the same time, however, he warned that department stores must do more with the fragrance category. He noted that many stores began slashing prices during the all-important Christmas selling season, a time when fragrance houses register a third of their sales for the year.

   
“Retailers must get more creative in terms of handling the category,” said Mr. Katz. “There’s only so much you can do with GWP!”

   
Still, Parlux held up well during the all-important holiday season.

   
“Our two majors, Paris Hilton and Guess, both did very well. It was the lowest returns we’ve had in years.”

   
With the strength of the Paris Hilton brand behind it, the launch of Guess by Marciano to build on, and the anticipation of new launches by Jessica Simpson and Nicole Miller to look forward to, Mr. Katz has the Parlux house in order and is ready to expand it.
blog comments powered by Disqus
  • Back to School

    Back to School

    Tom Branna, Editorial Director||September 1, 2016
    It may be September, but class was in session this summer during the Private Label Manufacturers Association’s Executive Educ

  • How Green Is Your Surfactant?

    How Green Is Your Surfactant?

    Tom Branna, Editorial Director ||September 1, 2016
    Suppliers offer a range of solutions to help household and personal care product formulators develop formulas

  • New Surfactants

    Tom Branna, Editorial Director ||September 1, 2016
    Here’s a list of new ingredients introduced by surfactant suppliers

  • Active Agents

    Active Agents

    September 19, 2016
    On the surface, surfactants may seem staid, but the market, and the supplier activity driving it, is bubbling.

  • Jam On It!

    Jam On It!

    Melissa Meisel, Associate Editor||September 19, 2016
    Jamberry sees success in artsy nail accessories.

  • Expanding Erbaviva

    Expanding Erbaviva

    Christine Esposito, Associate Editor||September 13, 2016
    A farm-to-bottle organic brand celebrates its 20th anniversary with a new look, new products and plans to expand in the US.

  • Vintage Glamour Rules the Runways at NYFW

    Vintage Glamour Rules the Runways at NYFW

    Melissa Meisel, Associate Editor||September 12, 2016
    A look at trends in cosmetics and hairstyling.

  • Rock n Roll

    Rock n Roll

    Melissa Meisel, Associate Editor||September 6, 2016
    A new sunscreen applicator is slowly making noise in the industry.

  • Lauder’s Latest Patents

    Lauder’s Latest Patents

    September 1, 2016
    A composition with NIR light emitting material, a skin care device and more awarded to this beauty business giant.

  • ‘Lash’-ing Out!

    ‘Lash’-ing Out!

    Christine Esposito, Associate Editor||August 29, 2016
    All eyes are on Lash Star Beauty, a lash-centric beauty brand that recently made its QVC debut.

  • Long Term Sustainability In the Nonwovens Market

    Long Term Sustainability In the Nonwovens Market

    August 23, 2016
    Learn more at Cleaning Products USA, Nov. 9-11, 2016

  • Fro Yo!

    Fro Yo!

    Tom Branna, Editorial Director||August 22, 2016
    Project Beauty dishes out Hairgurt, a line of vitamin-rich hair shampoos and conditioning masques.

  • TLC for Those Who Need It Most

    TLC for Those Who Need It Most

    Christine Esposito, Associate Editor||August 22, 2016
    New curriculum debuting at Bellus Academy helps estheticians treat a population that needs TLC.

  • And Now for Something Completely Different…

    And Now for Something Completely Different…

    August 15, 2016
    Phlur is out to make you rethink fragrance packaging.

  • The Butler Does It

    The Butler Does It

    August 15, 2016
    A new green cleaning product at your service.

  • Individualism IS The American Way

    Individualism IS The American Way

    Tom Branna, Editorial Director||August 15, 2016
    Why blue hair and BB creams still thrill US consumers.

  • Red, Black & Blue

    Red, Black & Blue

    August 8, 2016
    No matter who wins the US Presidential election, Americans expect their finances to get bloodied and bruised in 2017.

  • It

    It's a Shoe In!

    Melissa Meisel, Associate Editor||August 8, 2016
    Butter London links up with footwear designer for special collaboration.

  • The Power of Three

    The Power of Three

    Melissa Meisel, Associate Editor||August 1, 2016
    Iles Formula tri-system for tresses garners a celebrity following.

  • Athletes, Not Objects

    Athletes, Not Objects

    Nancy Jeffries, Contributing Editor||August 1, 2016
    Dove Unveils My Beauty billboard in Times Square.

  • Patent Update

    Patent Update

    July 28, 2016
    Three-layered hair product from Lauder, palm oil extracts for wrinkle treatment and more in recently awarded patents.

  • Pushin’ the Cushion

    Pushin’ the Cushion

    Christine Esposito, Associate Editor||July 26, 2016
    AmorePacific, the creator of the cushion compact, continues to improve its unique product.

  • Cozy Makes a Splash

    Cozy Makes a Splash

    Melissa Meisel, Associate Editor||July 25, 2016
    Expands reach in CVS and introduces new collection.

  • Senior Skin Care

    Senior Skin Care

    Christine Esposito, Associate Editor||July 19, 2016
    McCord Research and Product Quest Manufacturing roll out new hospital-grade skin care kits for seniors to use at home.

  • Naterra Expands Tree Hut Range

    Naterra Expands Tree Hut Range

    Melissa Meisel, Associate Editor||July 18, 2016
    New ‘Bare’ collection is out now.

  • An Antioxidant Arsenal

    An Antioxidant Arsenal

    July 11, 2016
    BioRewind is Dermarché Labs' new anti-aging regimen that delivers broad-spectrum antioxidant protection against free radicals

  • Enter Éclair

    Enter Éclair

    Christine Esposito, Associate Editor||July 5, 2016
    A new naturals line rolls out in Rite Aid stores nationwide.

  • Patent Update

    Patent Update

    June 30, 2016
    J&J's anti-aging patent, LVMH and cannabis essential oil, transdermal botulinum toxins and more in recent patent news.