Parlux sales still up despite fall in international markets
The company said that sales for the quarter, which covered the crucial holiday period, came in at $47.3m, compared to a figure of $44.5 for the same period a year ago.
This meant that preliminary sales for the nine months ending 31 December 2008 rose approximately 9 percent to reach $123.0m, compared to $113.3m for the same period in 2007.
Sales below expectations
CEO Neil Katz stated that the company had expected higher sales than those actually achieved during the last quarter and had committed to spending ‘accordingly’.
He pointed out that international sales had been impacted by ‘recessionary economic conditions and the volatile US dollar’, while in the domestic market sales in the last five weeks had been hit by a significant fall in consumer activity and the resulting drop in re-orders.
“In response to the reduction in sales during the last few weeks of the quarter, we have implemented steps to reduce costs, and continue to review all areas of our operation for fiscal 2010, while focusing on the long-term growth of our company,” said Katz.
Cost will take immediate effect
“The benefit of these cost reductions will be realized during our fourth quarter and into our next fiscal year," he said.
However, contributing to the continued improvement in sales, the company said that the new Jessica Simpson Fancy fragrance line, together with the Paris Hilton Fairy Dust fragrance have both contributed to the company’s strengthened position on the domestic market.
The company has scheduled a conference call for February 5, when it will announce the full results, together with its outlook for the coming fourth quarter.
