Fort Lauderdale, FL
Sales: $153 million
Sales:$153 million. Net income: $5 million for the year ended March 31, 2008.
Key Personnel:Neil J. Katz, chairman and chief executive officer; Raymond Balsys, chief financial officer; Frank A. Buttacavoli, executive vice president and chief operating officer; Hedy Abromovitz, vice president of operations; Kathleen Galvin, vice president of marketing and advertising; Jane Hershey, vice president of information technology; Craig Ahlheim, vice president of domestic sales; Lesbia Roner Hansen, vice president of international sales.
XOXO, Ocean Pacific, Paris Hilton, Maria Sharapova, Andy Roddick, Baby Gund, Fred Hayman and Guess?
New Products:Guess by Marciano (women and men), Fancy by Jessica Simpson, Fairy Dust by Paris Hilton, Frenzy by Nicole Miller.
Comments:Celebrity fragrances make good scents—pun intended—for this company. Sales from continuing operations were up 14% to $153.6 million for the fiscal year ended March 31, 2008, according to Parlux. Income from continuing operations was $5 million compared to a loss of $27 million in the prior year. Net income was $5 million, up 8% from the prior year.
The company achieved a $51 million improvement in income from continuing operations before income taxes, on a year to year basis “which underscores our success in restructuring our operations and refocusing our business,” said Neil Katz, chairman and chief executive officer. “We have reduced our operating costs by 33% by centralizing warehousing/distribution in New Jersey, and moving all corporate management and administrative activities into new office facilities in south Florida.”
In other cost-saving moves, Parlux reduced inventories by 35%, reduced G&A by 39% (ex- cluding non-cash share-based compensation charges of $244,662 in 2008 and $18,946,950 in 2007), and re-duced advertising by 22%, while concurrently increasing sales by 14%.
“Most significantly,” Mr. Katz continued, “the company had over $21 million in cash on hand at year end, and our $35 million bank line was not utilized. These funds will be available to support the launch of new licenses, specifically Jessica Simpson, Nicole Miller, Natori and Queen Latifah, and to fully support our ongoing base business of Paris Hilton and Guess. Additionally, we will be launching a new Paris Hilton fragrance this fall, as well as a new Guess men’s fragrance in the spring of 2009.”