Perfumania Holdings Inc. posted an 11.5 percent drop in net sales for the fourth quarter, citing a weak consumer environment and lower foot traffic.
The company’s net sales for the quarter were $162.5 million compared with $183.5 million in the prior-year period. Vince Camuto, Kenneth Cole and Rihanna launches did especially well, according to the company.
Net income for the quarter decreased dramatically — 58.9 percent — to $2.26 million from $5.5 million year-over-year. Earnings per share was $0.15 compared to $0.36 in the year-ago period.
For the full year, Perfumania posted a net loss of $11.7 million, an increase from $2.6 million in net income for the previous year. Net sales for the full year were down 7.2 percent to $542 million from about $584 million for the prior year.
“The fourth quarter and full-year decline in net sales were largely attributable to lower foot traffic at stores, in particular those located in malls, and the ongoing slowdown in tourist-dependent areas, such as Florida, due to the devaluation of many major foreign currencies,” said president and chief executive officer Michael Katz in a statement. “Retail operations were also impacted, though to a lesser extent, by the closing of several store locations.”
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Perfumania continues to evaluate underperforming store locations, and is planning to close multiple retail outposts as those shops approach lease renewals. The retailer shuttered 16 stores in fiscal 2015 and opened nine new locations during the year. “Our ongoing strategic initiative to leverage the value of our unique vertically integrated operations will allow us to improve overall returns from our retail store footprint by re-evaluating underperforming locations thereby allowing us to better allocate our operating, marketing, merchandising and financial resources to create a more compelling customer experience,” Katz said in a statement.
The business also updated its technology infrastructure with new point-of-sale technology and said it has signed an agreement with a “world-renowned fashion designer” that will be unveiled in the coming months. “We expect to cement additional partnerships to launch new and sought-after designer and fashion fragrances that support revenue growth while expanding the designers’ brands,” Katz said in the statement. Perfumania plans to introduce non-fragrance products into stores later in 2016.