Perfumania ends fiscal year with $56M loss

Among the fragrances from Perfumania are Tommy Bahama's Among the fragrances from Perfumania are Tommy Bahama's For Him, Nude by Rihanna, Ivanka Trump's Ivanka Trump, and Fiori by Vince Camuto. (April. 4, 2013) Photo Credit: Nancy Borowick

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Bellport-based Perfumania Holdings Inc. reported a $56- million loss in its fiscal year ended in February, as it continued to integrate its purchase of Parlux Fragrance Inc.

The loss was largely due to the costs of the Parlux transaction, which was completed in April 2012, and transitioning Parlux's operations from Florida to New York, said CEO Michael Katz. Perfumania, a manufacturer, wholesaler and retailer of perfumes, had reported net income of $4.1 million in the prior year.

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The company also has been investing in Parlux, ramping up its portfolio of new fragrances and high-profile brand names, which include singer Rihanna, rapper and producer Jay-Z and fashion designers Kenneth Cole and Vince Camuto. The company's selling and general and administrative expenses increased almost 38 percent to $230 million from the previous year.

Sales for the year ended Feb. 2 increased about 8.4 percent from the previous year to $534.8 million. Retail sales rose 2.8 percent from the prior year because of increases in prices per unit as well as customer traffic, the company said in a report filed earlier this month. Wholesale sales jumped 22.5 percent mainly as a result of the Parlux acquisition.

"We knew it was going to be a challenging year because of the acquisition," Katz said. "Clearly we're much more optimistic about performance for the coming year."

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