the numbers are great
they went up quite a bit from a loss to a good gain in Q3, including the extraordinary one time gain!
Tuesday December 14, 2:28 pm Eastern Time
Company Press Release
SOURCE: Perfumania, Inc.
Perfumania, Inc. Reports Third Quarter Net Profit of
$5.6 Million
MIAMI, Dec. 14 /PRNewswire/ -- Perfumania, Inc. (Nasdaq: PRFM - news), the nation's largest perfumery chain, announced today positive results for its third quarter ended October 30, 1999. The net profit includes an extraordinary gain of $5.6 million as well as net operating income of $13,000.
For the third quarter ending October 30, 1999, the Company reported a net profit of $5.6 million, or $0.47 per diluted share, compared with a net loss of $3.9 million, or ($0.59) per diluted share, for the third quarter of fiscal year 1998. Excluding a net extraordinary gain of $5.6 million, representing a $5.9 million gain on sale of stock of the initial public offering of its subsidiary, perfumania.com, inc. (AMEX: PF - news), and an extraordinary charge of $0.3 million, representing the loss on pre-payment of debt, operating income was $13,000. The positive results were driven by increases in total revenues, comparable retail store sales and gross profits, as well as an improved control of expenses.
Third quarter total revenues achieved in 1999 increased 28.6% to $47.7 million from $37.1 million reported in 1998. Retail sales
increased 21.5% to $36.5 million from $30.1 million in the third quarter of 1998. Comparable store sales increased 15.8%. Total gross profit for the third quarter of 1999 increased 34.1% to $20.1 million from $15.0 million in 1998. For the nine months ended October 30, 1999, total revenues increased 15.5% compared to the same period in fiscal 1998. The reported net profit of $1.2 million, or $0.12 per diluted share, compares to a net loss of $7.9 million, or ($1.21) per diluted share, for the nine months ended October 31, 1998. Excluding a nine-month extraordinary net gain of $5.6 million, the operating loss was $4.4 million, or ($0.45) per diluted share, which compares favorably with a net loss of $7.9 million, or ($1.21) per diluted share, for the nine months ended October 31, 1998.
Ilia Lekach, Chairman and Chief Executive Officer of Perfumania, said, ''We are very proud of our profitable third quarter results.
The vast improvements were driven by our creative Internet strategy, efficiency-focused management, effective merchandising
and marketing programs, and improved expense controls.''
Mr. Lekach added, ''Perfumania's comparable store sales have shown solid increases for twelve consecutive months. An improved merchandising assortment, the successful launch of World Championship Wrestling's, WCW NITRO(TM) FOR MEN FRAGRANCES, (World Championship -- A Time Warner Company. All Rights Reserved) and continued cross marketing and cross advertising efforts with perfumania.com should contribute to a successful fourth quarter.''
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 280 retail stores specializing in the sale of fragrances at discounted prices up to
75 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 S-1. |
