Perfumania Holdings Inc., the seller of celebrity and designer perfumes and fragrances, said it is considering “various alternatives to address the company’s financial condition.”
The Bellport-based company announced that a special committee of independent directors is looking into the company’s capital structure and has contacted the Nussdorf family, which owns about 50 percent of Perfumania’s outstanding common stock and the majority of its debt, to discuss “possible alternatives” that “could result in value to all shareholders.”
Previously the company said it was reviewing and updating its sales strategy “in order to improve operating results.”
The company, which sells scents by Dolce & Gabbana, Giorgio Armani and Paris Hilton, among others, reported lower sales and net income in its 2016 and 2017 fiscal years ending in January. In its most recent fourth-quarter report, the company reported lower sales and profit amid weak sales at the company’s mall stores, posting net income of $2.3 million, or 15 cents per diluted share, for the quarter ended Jan. 30, compared with $5.5 million, or 36 cents per share in the year-earlier period.
As of October 2016, Perfumania had 295 stores, down from 320 the previous year.
The company said in its Friday release, issued after the market closed, that it would not disclose further information about its review process for the time being.
Shares of Perfumania fell 6 cents, or 4.5 percent, yesterday, closing at $1.29. In the past 12 months, the shares are down 52 percent.