Parlux Reports Drop in Profits

Parlux Fragrances, Inc., Ft. Lauderdale, FL, said sales for the second quarter rose 5% to $19,041,386. Operating income fell 21% to $2,476,901, due primarily to lower margins on certain discontinued items and higher advertising to support new product launches. Net income decreased fell more than 20% to $1,413,725.

For the six-month period ended Sept. 30, net sales increased 9% to $37,054,759. Operating income fell 7% to $4,314,967. The net loss of $303,513 for the period compared to a profit of $2,603,737 in the comparable prior period.

“The national tragedy immediately impacted our business, both domestically and internationally,” said Ilia Lekach, chairman and chief executive officer. “We had projected a 15% growth rate as experienced in the first quarter, but orders in the final 20 days of the quarter and to date have been significantly lower than expected. The short-term outlook remains uncertain given the consequences of the September event, coupled with the economic slowdown.”