Bellport-based Perfumania Holdings Inc. reported lower sales and net income for the third quarter ended Oct. 29, driven by fewer Perfumania stores in operation, lower mall traffic at stores and lower customer demand.
The seller of celebrity and designer perfumes and fragrances, including scents by Vince Camuto, Kenneth Cole and Rihanna, reported on Tuesday it had net income of $688,000, compared with net income of $3 million a year earlier.
Perfumania posted third-quarter net sales of $125.2 million, down 11.8 percent from a year earlier. Wholesale revenue decreased 9.7 percent to $75.1 million, while retail sales decreased 14.8 percent to $50.1 million.
“In order to navigate the difficult retail environment, throughout fiscal 2016 we have focused on optimizing our retail footprint by closing marginal and underperforming Perfumania stores,” Michael Katz, president and chief executive of Perfumania, said in a statement. “Such store closures continue to impact retail net sales, though we are moving toward a more profitable overall revenue mix from our remaining retail footprint. In addition, by focusing on our best locations we are better allocating operating, marketing, merchandising and financial resources.”
Perfumania had 295 stores during the quarter, down from 320 a year earlier. Perfumania also operates the website Perfumania.com and a wholesale distribution network that serves thousands of retail locations.
Shares of Perfumania dropped 15 cents to close at $2 Tuesday on the Nasdaq stock market. The stock is down nearly 40 percent in the last year.