07.17.09
The power of Paris Hilton propelled Parlux's sales higher in the first quarter. Parlux Fragrances, Inc. said preliminary first quarter net sales rose 1% to$23.6 million. Domestic department store net sales for the quarter reached $8.4 million, an increase of 53% over the prior year period. Sales to international customers were $10.2 million, a decrease of 36% over the prior year period.
“Sales in the quarter were negatively affected by the global economic climate. Nevertheless, our department store sales continued to improve and this bodes well for our future. Our total sales were less than anticipated, essentially due to lower than expected international sales," said Neil J. Katz, chairman and CEO. "However, our product sales mix resulted in improved margins; and reduced spending and staffing are anticipated to result in a substantially reduced loss for the quarter compared to the prior-year quarter.
Parlux has a number of introductions planned for the July-September period, including “Queen” by Queen Latifah, Paris Hilton “Siren”, Jessica Simpson “Fancy Love”, Marc Ecko and Josie Natori.
As previously announced, the Company entered into an agreement with Artistic Brands Development, LLC (“Artistic”) for the worldwide fragrance rights for Rihanna and Kanye West, and, as part of that agreement, expected to enter into similar licenses with Shawn “Jay-Z” Carter and a well-established female artist.
Mr. Katz further added, “As for the fourth celebrity and the delay in finalizing this agreement, we have learned that she is currently involved in negotiating a much larger transaction outside of the fragrance industry, which has taken precedence for her. If successful, we believe this would provide additional exposure and be beneficial to us. We hope to be able to finalize our negotiations as soon as her other negotiations are completed.”
“Sales in the quarter were negatively affected by the global economic climate. Nevertheless, our department store sales continued to improve and this bodes well for our future. Our total sales were less than anticipated, essentially due to lower than expected international sales," said Neil J. Katz, chairman and CEO. "However, our product sales mix resulted in improved margins; and reduced spending and staffing are anticipated to result in a substantially reduced loss for the quarter compared to the prior-year quarter.
Parlux has a number of introductions planned for the July-September period, including “Queen” by Queen Latifah, Paris Hilton “Siren”, Jessica Simpson “Fancy Love”, Marc Ecko and Josie Natori.
As previously announced, the Company entered into an agreement with Artistic Brands Development, LLC (“Artistic”) for the worldwide fragrance rights for Rihanna and Kanye West, and, as part of that agreement, expected to enter into similar licenses with Shawn “Jay-Z” Carter and a well-established female artist.
Mr. Katz further added, “As for the fourth celebrity and the delay in finalizing this agreement, we have learned that she is currently involved in negotiating a much larger transaction outside of the fragrance industry, which has taken precedence for her. If successful, we believe this would provide additional exposure and be beneficial to us. We hope to be able to finalize our negotiations as soon as her other negotiations are completed.”