Parlux Fragrances reported preliminary net sales for the third quarter ended Dec. 31 were up 2.5 percent to about $48.5 million, from $47.3 million during the same period a year ago.
This story first appeared in the January 11, 2010 issue of WWD. Subscribe Today.
Revenues for the nine-month period were estimated to be $128.6 million, up 4.6 percent from $123 million in the prior-year period.
The results exclude approximately $3.5 million worth of Guess inventory that was sold at cost during the quarter to Coty Inc., the new Guess fragrance licensee, Parlux noted. Including the sales to Coty, net sales for the third quarter increased by 10 percent to $52 million and, for the nine months, increased 7 percent to $132.1 million.
“In this difficult economy, the U.S. prestige fragrance industry continued to struggle,” stated Neil J. Katz, chairman and chief executive officer of Parlux. “However, we did see positive trends in the international and mass market channels.”
Katz added, “We were also able to sell our Guess finished goods inventory to our customers and Coty, and continue to negotiate the transfer of our remaining unfinished inventory to Coty. Although not yet finalized, we expect to record some charges for certain Guess promotional items and other unfinished inventory.”
Katz said despite the expiration of the Guess license, he remains optimistic the firm’s new brands and product launches in the upcoming year “will provide a platform for growth and positive results.”
In other Parlux news, Katz will be honored at the 35th annual Beauty Ball, which will be held at Cipriani 42nd Street in Manhattan on March 11.
He will receive the Beautiful Apple Award. Also, Jon Pollack, executive vice president of sales promotion, marketing and e-commerce for Belk Inc., will receive the Retailer of the Year Award.
Lawrence Aiken of the Condé Nast Media Group will be the gala’s honorary chairman.