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Perfumania shares rise after higher profit report

Bellport-based Perfumania Holdings Inc. reported higher net income and lower net sales for the third quarter compared with a year earlier, driven by new product launches, sales of additional brands and fewer stores.

Shares of Perfumania rose 15 cents to $6.05 in morning trading Wednesday on the Nasdaq stock market. The shares are down 4.7 percent year to date.

The seller of celebrity perfumes and fragrances, including Vince Camuto, Mankind by Kenneth Cole and Rogue by Rihanna, reported net income of $7.51 million, an increase of 3.1 percent from $7.28 million a year earlier, according to a federal regulatory filing late Tuesday.

Perfumania posted net sales for the third quarter ended Nov. 1 of $154.33 million, down 0.9 percent from $155.68 million in the same quarter a year ago. Wholesale revenue was $78.9 million, a decrease of 0.9 percent from $79.6 million in the corresponding period in 2013, while retail sales were $75.5 million, a 0.8 percent decrease from $76.1 million last year. The decrease in Perfumania's sales was due primarily to 10 fewer stores being operated.

The company's wholesale subsidiary Quality King Fragrance Inc.'s sales increased to $51.2 million from $50.6 million due to higher customer demand and additional distribution of owned, licensed and distributed brands. At another subsidiary, Parlux Fragrances LLC, acquired for about $152 million in April 2012, sales decreased to $27.8 million from $28.1 million.

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.

Perfumania operates a chain of 326 retail stores, as well as the company owned website 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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