Parlux Anticipates Charge To Divest/Discontinue Brands
FORT LAUDERDALE, Fla., March 4 /PRNewswire/ -- Parlux Fragrances, Inc. (Nasdaq: PARL) announced today that with the agreement to license the cosmetic/fragrance rights for the Alexandra de Markoff brand, and the discontinuation of Todd Oldham and other marginal brands representing less than 10% of the current annual sales, the Company expected to take a charge of approximately $8 million, against which it anticipates recovering approximately $3 million in income taxes. The charge will not require cash outlay and relates mainly to write-offs of inventory and advertising materials. It will be recorded in the fourth quarter of the Company's fiscal year ending March 31, 1998.
Commenting on the charge, Mr. Ilia Lekach, Chairman and Chief Executive of Parlux, said, "Over the last fifteen months, the Company has been in the process of reconfiguring itself to concentrate on its core fragrance business. We expect that this charge completes that process, and that the Company is now positioned for significantly improved performance for fiscal 1999 and the future."
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 the Bal a Versailles fragrance and four of its own fragrance brands including Animale Parfums.
SOURCE Parlux Fragrances, Inc.
CO: Parlux Fragrances, Inc.
ST: Florida
IN: HOU
SU:
03/04/98 13:45 EST prnewswire.com
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