Parlux Feels the Heat of the Economy

Times are tough for marketers everywhere - even fine fragrance leaders. Net sales for the fourth quarter at Parlux Fragrances, Inc. slipped 30% to $28.2 million. Net sales for the fiscal year ended March 31, 2009 dipped 2% to $151.2 million.

Mr. Neil J. Katz, Chairman and CEO, commented, "In the fourth quarter, our domestic department store sales increased by 7% and our sales to Perfumania increased by 8%; nevertheless, we were not immune to the global reduced demand that affected our international markets. Recognizing the global situation we concentrated on improving our product mix to provide higher gross margins while also reducing operating expenses which resulted in a profit for the quarter, despite a 30% reduction in total sales."

Mr. Katz added, "For the full fiscal year, our net sales declined about 2% as a result of the fourth quarter performance. We invested heavily in building our U.S. department store business which had shown an 82% increase through the first nine months of the fiscal year. Our department store business increased by 63% for the year. We have markedly improved in-store presence and solidified our platform for future growth."