Perfumania Holdings Inc., the Bellport-based distributor and retailer of fragrances such as Donald Trump's Success, Wednesday reported a wider loss in the first quarter, largely due to its recent acquisition of a Florida perfume company.
Perfumania's net loss increased to about $13.1 million for the quarter ended April 28, jumping from a $3.8 million loss reported a year earlier.
The company completed its merger with Parlux Fragrances Inc., a Fort Lauderdale-based celebrity perfume maker, on April 18, issuing about six million shares of Perfumania's common stock and paying $62.1 million in cash to Parlux shareholders. Parlux's results, starting from the date the merger was completed, were included in Perfumania's quarterly results.
"We are definitely pleased to have closed the acquisition, and we're working hard to integrate the companies," said Michael W. Katz, Perfumania Holdings president and chief executive.
Some factors that contributed to the wider loss included a $2.6-million increase in selling, general and administrative costs; a $3.8 million one-time charge related to stock options issued in the acquisition; and a $4.3-million charge for professionals assisting in the merger, according to the company's financial filings.
Net sales for Perfumania Holdings rose 0.6 percent to $106.4 million for the quarter, up from $105.8 million in the same period last year. The company's gross profit increased 2.9 percent to $41.3 million.