Restructuring leads to narrower losses for Parlux

By Simon Pitman

- Last updated on GMT

Related tags The quarter at tropicana Cent License Parlux

Fragrance maker Parlux appears to be benefiting from a
renewed focus, restructuring and a compensation charge
- factors that have all led to a significant
reduction in losses for the third quarter.

The company said that unaudited results show that sales for the three months were up 11 per cent compared to the same period last year, up from $28.24m to £31.36m. A combination of the strong surge in sales, combined with new license agreements and business restructuring meant that losses for the quarter were narrowed down from $14.12m in the corresponding quarter last year, to $$97,628. The results were boosted by the non-audited non-cash share based compensation charge of $16.20m, which in turn helped to drive operating back in to the black, up from a loss of $18.9m in the corresponding quarter last year, to $367,979. Net loss from continuing operations was $49,613 compared to a loss of $17,235,703 in the same period of the prior year. "The Company has made significant progress on many fronts. We have assessed the strengths and weaknesses of the organization, expanded our financial team, consolidated our distribution facilities, and defined a strategic plan,"​ Neil Katz, Parlux CEO. Speaking about the increased sales, Katz stated that the worldwide license agreement with Jessica Simpson and another more recent agreement with Nicole Miller would help to further boost future sales growth. The company announced the license agreement with Nicole Miller Brands on August 10, in a deal that will see the launch of a new prestige fragrance for the fine specialty store market in the US. "We have moved aggressively to build our core business in prestige distribution, and have positioned ourselves for strong profitable growth,"​ Katz added. Shares closed up 6 cents at $3.31 yesterday, compared to a year-high of $7.97. The company has scheduled a conference call for August 28, at 10am EDT.

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