Bellport-based Perfumania Holdings Inc. reported a widened net loss and a decline in total sales for the quarter ended April 30, as the seller of celebrity brand fragrances closed a number of underperforming retail stores.
The company, which sells scents by designers Vince Camuto and Kenneth Cole and singer Rihanna, said its net loss for the first quarter widened to $6.4 million from a net loss of $165,000 during the same quarter last year.
Total sales for Perfumania fell by about 18 percent to $105.1 million from $128.2 million during the year-earlier period. Chief executive Michael Katz said in a statement that sales were hurt by the company’s decision “to close a number of underperforming stores during the first quarter of fiscal 2016.”
The company also said retail sales were affected by the transition of one of the company’s largest accounts to a wholesale relationship.
“As other retailers have reported, the first quarter continued to present a challenging consumer environment,” Katz said. The company said it was also hurt by lower values against the dollar in major foreign currencies, and “our retail and wholesale operations experienced lower foot traffic, particularly at locations in B- and C-rated malls and tourist-dependent areas.”
Perfumania said earlier this year it had identified underperforming stores it expected to close when their leases were up. The company has closed 12 stores since the first quarter last year when the company had 318.
Shares of Perfumania, which trade on the Nasdaq Stock Market, fell 11.7 percent on Tuesday to close at $2.19.