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Perfumania net income dives 60 percent as tastes shift

Perfumania at Penn Station in an undated

Perfumania at Penn Station in an undated photo. Photo Credit: Minyvonne Burke

Bellport-based Perfumania Holdings Inc. reported lower sales and a sharp drop in net income for the third quarter ended Oct. 31, driven by a decline in mall foot traffic, fewer stores and the devaluation of foreign currencies against the U.S. dollar.

The seller of celebrity perfumes and fragrances, including scents by Vince Camuto, Kenneth Cole and Rihanna, Tuesday reported net income of $3 million, a decrease of 60 percent compared with net income of $7.5 million a year earlier.

Perfumania posted net sales for the third quarter of $141.8 million, down 8 percent from $154.3 million a year earlier. Wholesale revenues rose 5.5 percent from $78.9 million to $83.2 million, while retail sales decreased by 22.1 percent from $75.5 million to $58.8 million.

“While our fragrance portfolio has been impacted by the decline in consumer interest in celebrity fragrances, we intend to shift our fragrance offering mix from a celebrity-centric offering to a more designer-based fragrance and brand portfolio,” Michael Katz, president and chief executive of Perfumania, said in a statement.

At the end of the third quarter, the company operated 319 corporate-owned retail stores, compared to 325 in the year-earlier period. It also operates the website, as well as a wholesale distribution network that serves thousands of retail locations.

Shares of Perfumania fell 35 cents to close at $2.86 Tuesday on the Nasdaq stock market. The stock has dropped more than 50 percent year to date.

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