The Florida-based company has reported a preliminary increase in sales of 43 percent for the quarter ending September 30, in comparison to the same quarter last year.
Resolved inventory problems
However, this figure was enhanced by delayed shipments resulting from inventory problems the company experienced in the first quarter of this fiscal year. Sales growth for the six month period came in at just over 10 per cent.
“We experienced a problem in the first quarter of this year, in that we ran short on a number of products and were unable to ship international sales,” Parlux CFO Raymond J Balsys told CosmeticsDesign.com.
Therefore shipments that should have gone out in the first quarter were distributed during the second, he explained.
Celebrity fragrances, including the new perfumes from Jessica Simpson and Paris Hilton, contributed considerably to the quarter’s results.
Jessica Simpson’s Fancy, which was launched in August 2008, accrued an estimated $6.5m in sales, and Fairy Dust from Paris Hilton, which the company is pushing for the upcoming holiday season, has recorded an estimated $1.5m.
Department stores looking good
The company also reported significant increases in department store sales in a period when many analysts are predicting lower performances from this retail sector.
Domestic department store sales for the quarter are estimated to have increased 190 per cent on the same period last year. The increase for the six months ending September 30 comes in at 82 per cent.
Balsys explained that this increase could be attributed to the restructuring of the company’s sales department.
“Over the course of the last year our new vice president for domestic sales has been realigning personnel and has added a new layer to the team dealing with department store sales. We now have people who work in department stores to facilitate sales of the products to customers. As a result our brands are doing well,” he said.
Even in light of the current economic climate, Parlux remains quietly confident about the coming months.
“We continue to see consumer demand for our brands increase, even in the light of the very difficult economic environment. Despite the difficulty in predicting the outcome of the upcoming holiday season, we remain cautiously optimistic,” said CEO Neil J. Katz in a statement.