Brand Discontinuations And Consolidations Result In Declines At Parlux
February 6, 1998 04:35 PM
FORT LAUDERDALE, Fla., Feb. 6 /PRNewswire/ -- Parlux Fragrances, Inc. PARL announced today that sales and profits for the quarter ended December 31, 1997 were lower than the prior year due to the discontinuation of the Todd Oldham and Vicky Tiel fragrance brands, to costs incurred in connection with the closing of the Company's French operation, and to the planned reduction in sales to related parties.
Net sales decreased 25% to $20,375,443 in the current quarter, compared to $27,019,820 in the prior year quarter. Sales to related parties decreased 35%. Net income for the current period was $42,909 as compared to $87,705 in the prior year, which was inclusive of an extraordinary charge of $901,648 relating to the redemption of certain convertible debentures during October 1996. Earnings per share decreased to less than $0.01 per share, compared to $0.01 per share last year.
Net sales for the nine-month period decreased 32% to $48,610,711 from the previous year's $71,262,620. Net income for the current period was $75,365 as compared to $4,170,460 in the prior year. Earnings per share decreased to less than $0.01 per share, compared to $0.25 per share last year.
Commenting on the results, Ilia Lekach, Chairman and Chief Executive Officer of Parlux said, "We continue to focus on strengthening our balance sheet by reducing inventory and accounts receivable, and decreasing the number of outstanding shares of common stock. Since commencing our stock buy-back program, the Company has acquired in excess of 2,230,000 shares of its common stock, and has an additional 870,000 shares which may be purchased from time to time as previously authorized by the Board of Directors. As a result, the Company's net book value per share continues to increase."
Parlux Fragrances, Inc. is a manufacturer and international distributor of prestige fragrances, cosmetics and related beauty products. Parlux holds the licenses to manufacture and distribute the designer fragrance brands of Perry Ellis, Fred Hayman Beverly Hills, and Baryshnikov. The Company also owns, manufactures and distributes Alexandra de Markoff cosmetics and fragrances, the Bal A Versailles fragrance and four of its own fragrance brands including Animale Parfums.
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