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Business

Perfumania net loss narrows from year earlier

Bellport-based Perfumania, manufacturer, wholesaler and retailer of personal

Bellport-based Perfumania, manufacturer, wholesaler and retailer of personal fragrances, operates a chain of 323 retail stores, as well as the company-owned website Perfumania.com.

Bellport-based Perfumania Holdings Inc. reported a narrower net loss for the second quarter compared with a year earlier, driven by growth in its perfume business and by acquisitions.

The seller of celebrity perfumes and fragrances, including Vince Camuto, Mankind by Kenneth Cole and Rogue by Rihanna, reported a net loss of $9.9 million, down from a loss of $15.3 million a year earlier, according to a federal regulatory filing late Monday.

Perfumania Holdings posted net sales for the second quarter ended Aug. 2 of $113.1 million, up 0.4 percent from $112.7 million in the same quarter a year ago. Wholesale revenue rose $5.4 million, partly offset by a $5 million decrease in retail sales.

The revenue increase was driven by new product launches and sales of additional brands, including revenue gains at the company's two wholesale subsidiaries, Quality King Fragrance Inc. and Parlux Fragrances LLC. Perfumania Holdings acquired Parlux for about $152 million in April 2012.

Gross profit for the second quarter was $51.9 million, an increase of 14.4 percent from $45.4 million in the corresponding period in 2013.

"We are starting to see the true benefits and synergy starting to materialize as a result of the Parlux acquisition," said Donna L. Dellomo, vice president and chief financial officer for Perfumania Holdings. "This is the first year that you are seeing the true performance of the companies and the combined entities. . . . We are optimistic that we will have positive performance year over year."

During the year, wholesale revenues fluctuate due to seasonal demand, with the biggest retail sales occurring from September through December each year, according to the company's report.

Shares of Perfumania Holdings rose 9 cents to close at $6.46 Tuesday on the Nasdaq stock market. The shares are up 2.2 percent since Jan. 2.

Perfumania operates a chain of 323 retail stores, as well as the company owned website Perfumania.com. Scents of Worth, a subsidiary, sells designer fragrances on a consignment basis in about 2,000 stores, including about 1,000 Kmart locations.

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