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Perfumania profit drops more than 50% in quarter

A Perfumania store.

A Perfumania store. Credit: Minyvonne Burke

Net income at Bellport-based Perfumania Holdings Inc. dropped by more than 50 percent for the quarter ended Jan. 30 as the seller of celebrity fragrances dealt with a decrease in same-store sales and a lower number of stores.

The company, which sells scents by Vince Camuto, Kenneth Cole and Rihanna, said net income for its fourth quarter fell to $2.3 million from $5.5 million — a 58.9 percent drop — in the same quarter a year earlier.

Total sales for the company fell 11.5 percent to $162.6 million from $183.5 million during the same quarter a year earlier. The quarterly decline in revenue was due largely to fewer customers at retail locations, and an “ongoing slowdown” in tourism hubs like Florida, which the company said was linked to weaker foreign currencies.

“The fourth quarter marked the conclusion of what was a transitional and challenging year for Perfumania largely related to a weak consumer environment, which impacted our retail operations,” Michael Katz, president and chief executive of Perfumania, said in a statement.

Perfumania said it has identified underperforming stores that it expects to close when their leases come up for renewal. The company closed 10 stores in the fourth quarter.

For the full year, the company swung to a net loss of $11.7 million from net income of $2.6 million in the prior year. Total net sales for fiscal 2015 were $542 million, down from $584 million in 2014.

Perfumania reported earnings before the market opened on Friday. Shares of the company, which trade on the Nasdaq Stock Market, rose 8 cents to close at $2.80.

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