Perfumania, Inc. Reports Profit for the Second Quarter
Accelerating Retail Sales Exceed Expectations
MIAMI, Aug. 27 /PRNewswire/ -- Perfumania, Inc. (Nasdaq: PRFM), the
nation's largest perfumery chain, announced today positive results for its
second quarter ended July 31, 1999.
For the second quarter of 1999, the Company reported a profit of
$0.7 million or $0.09 per diluted share, compared with a net loss of
$1.3 million or ($0.20) per diluted share for the second quarter of 1998.
This improvement was driven by increases in total revenues, comparable retail
store sales, and gross profit. The above second quarter 1999 results are
before a non-cash interest charge on issuance of convertible debentures
required by SEC regulations.
Second quarter total revenues for 1999 increased 15.8% to $46.0 million
from $39.7 million reported in 1998. Retail sales increased 18.9% to $35.0
million from $29.5 million in 1998. Comparable store sales increased 12.1%.
Total gross profit increased 16.0% to $19.2 million from $16.5 million in
1998.
Ilia Lekach, Chairman and Chief Executive Officer of Perfumania, said, "We
are very proud of our second quarter performance and profitable results.
Management's focus on sales combined with a much improved inventory mix
validates Perfumania's customer response to the implemented changes."
Mr. Lekach added, "Under our management, Perfumania's sales, gross profits
and comparable store sales have shown solid increases for 8 consecutive
months. Improved merchandising, targeted marketing and implemented expense
controls place the Company on target to achieve a profitable year."
About Perfumania, Inc.
Perfumania, Inc. is a leading specialty retailer and wholesale distributor
of a wide range of brand name and designer fragrances. Perfumania, Inc.
operates a chain of approximately 279 retail stores specializing in the sale
of fragrances at discounted prices up to 70 percent below the manufacturer's
suggested retail prices. Perfumania, Inc.'s wholesale division, one of the
largest in the United States, distributes fragrances and related products to
national and regional chains and other wholesale distributors throughout North
America and overseas.
This press release contains forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially from
those set forth in the forward-looking statements. Such risks and
uncertainties are described in the Company's filings with the SEC, including
its Registration Statement on Form SB-2.
Perfumania, Inc.
Financial Highlights
For the Three Months Ended
July 31, 1999 August 1, 1998
Net sales $45,952,514 $39,684,364
Cost of goods sold 26,798,751 23,173,689
Gross profit 19,153,763 16,510,675
Operating expenses:
Selling, general and administrative 16,283,908 15,522,774
Depreciation and amortization 1,149,275 1,094,215
Total operating expenses 17,433,183 16,616,989
Income (loss) from operations
before other expense 1,720,580 (106,314)
Other expense (1,050,951) (1,166,344)
Income (loss) before non-cash
interest charge on
convertible debenture 669,629 (1,272,658)
Non-cash interest charge
on convertible debenture (637,498) --
Net profit (loss) $32,131 ($1,272,658)
Income (loss) per diluted share before
non-cash interest charge on convertible
debenture $0.09 $(0.20)
Loss per diluted share on non-cash interest
charge on convertible debenture (0.09) --
Diluted profit (loss) per share $0.00 $(0.20)
Weighted average shares outstanding:
Basic 7,443,871 6,519,440
Diluted 7,443,871 6,519,440
SOURCE Perfumania, Inc. |
