07.10.09
Shoppers at Macy's, Bloomies and Dillards are still spending on their favorite celebrity juices - as seen at Parlux. The company reported that net sales for the quarter ended June 30, 2009 are preliminarily estimated to rise only 1% to $23.6 million. However, domestic department store net sales for the quarter jumped 53% to $8.4 million. However, sales to international customers dropped 36% to $10.2 million.
Mr. Neil J. Katz, chairman and chief executive officer, commented, "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. 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."
Mr. Katz added, "We have a number of new introductions planned for the July-September period, including 'Queen' by Queen Latifah, Paris Hilton 'Siren,' Jessica Simpson 'Fancy Love,' Marc Ecko and Josie Natori, all of which have been favorably received. We are also beginning to see some improvement in certain international markets."
As previously reported in Happi, the company entered into an agreement with Artistic Brands Development, LLC 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."
Mr. Neil J. Katz, chairman and chief executive officer, commented, "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. 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."
Mr. Katz added, "We have a number of new introductions planned for the July-September period, including 'Queen' by Queen Latifah, Paris Hilton 'Siren,' Jessica Simpson 'Fancy Love,' Marc Ecko and Josie Natori, all of which have been favorably received. We are also beginning to see some improvement in certain international markets."
As previously reported in Happi, the company entered into an agreement with Artistic Brands Development, LLC 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."
