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Perfumania loss widens on weak demand, fewer stores

Perfumania at Penn Station in an undated photo.

Perfumania at Penn Station in an undated photo. Bellport-based Perfumania Holdings Inc. reported lower sales and a nearly 70 percent wider net loss for the second quarter ended Aug. 1, 2015. Credit: Minyvonne Burke

Bellport-based Perfumania Holdings Inc. reported lower sales and a nearly 70 percent wider net loss for the second quarter ended Aug. 1, driven by weak wholesale seasonal demand, fewer stores and changes in foreign exchange rates against the U.S. dollar.

The seller of celebrity perfumes and fragrances, including scents by Vince Camuto, Kenneth Cole and Rihanna, reported a net loss of $16.8 million, compared with a net loss of $9.9 million a year earlier, according to a federal regulatory filing late Tuesday.

Perfumania posted net sales for the second quarter of $109.3 million, down 3.4 percent from $113.1 million a year earlier. Wholesale sales increased by 0.2 percent from $40.6 million to $40.7 million, while retail sales decreased by 5.4 percent from $72.6 million to $68.7 million.

In addition to 319 Perfumania retail stores, Perfumania operates the website Perfumania.com. Its Scents of Worth subsidiary sells designer fragrances on a consignment basis in about 1,900 stores, including about 900 Kmart locations.

The company's earnings report was released Tuesday after the market close. On Wednesday, its shares dropped more than 3 percent to close at $4.69. The stock has dropped more than 20 percent year to date.

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