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Perfumania swings to profit on increased sales of celebrity scents

Bellport-based Perfumania Holdings Inc. reported higher net income

Bellport-based Perfumania Holdings Inc. reported higher net income and higher net sales for fiscal year 2014 compared with a year earlier. The company sells celebrity perfumes and fragrances, including scents by Vince Camuto, Kenneth Cole and Rihanna, who is pictured here. Photo Credit: Getty Images / Christopher Polk

Bellport-based Perfumania Holdings Inc. swung to a profit in its year ended Jan. 31, from a loss a year earlier, driven by higher wholesale demand and additional distribution of owned and licensed brands.

The seller of celebrity perfumes and fragrances, including scents by Vince Camuto, Kenneth Cole and Rihanna, reported net income of $2.6 million, or 17 cents a share, compared with a net loss of $12.5 million a year earlier, or a loss of 81 cents a share, according to a federal regulatory filing late Thursday.

Perfumania posted net sales for the latest year of $584 million, up 1.4 percent from $575.9 million a year earlier. Wholesale revenue was $239.4 million in fiscal year 2014, an increase of 7.3 percent from $223.2 million in fiscal 2013, while retail sales were $344.5 million, a 2.3 percent decrease from $352.7 million for the previous fiscal year.

Retail sales fell due to a lower store count, lower mall traffic during the 2014 holiday season for Perfumania, and the termination of consignment relationships for the company's subsidiary Scents of Worth. Perfumania operated 325 stores in fiscal 2014, compared with 336 in fiscal 2013, according to the company's report.

The company's wholesale subsidiary Quality King Fragrance Inc.'s sales rose by $8.6 million. At another subsidiary, Parlux Fragrances LLC, acquired for about $152 million in April 2012, sales increased by $9.1 million.

In addition to the retail stores, Perfumania operates the website Perfumania.com. Scents of Worth sells designer fragrances on a consignment basis in about 1,900 stores, including more than 1,000 Kmart locations.

The company's shares dropped 9 cents to close at $5.37 Friday.

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