Celebrities, designers keep Parlux on an earnings roll
celebrity and designer fragrances licenses and is expecting to
report an impressive 74 percent increase revenue for Q2 compared
with last year.
The Fort Lauderdale, Florida-based company counts Paris Hilton and Maria Sharapova fragrances amongst its most successful products.
The preliminary results released today indicate that revenue for the quarter ended September 30 will be between $39 and $40 million, compared with $22.7 million for the same three months of 2004. Chairman and CEO Ilia Lekach said that he is "optimistic" that previous guidance of $190 - $210 million in revenues will be achieved, and $2.00 to $2.20 earnings per share.
The company expects to report the final results for the quarter in the first week of November.
Lekach said that the quarter was characterized by a successful launch of the Guess fragrance and continuing demand for Paris Hilton fragrances.
The latest indications come on the back of a very strong Q1, with a 74 percent increase in operating income to $6.1 million. Net sales increased 47 percent to $33.8 million over the prior year period, while sales and distribution costs rose by just 33 per cent.
In the remainder of the fiscal, Parlux has more Hilton launches to look forward to: the new Just Me fragrance, as well as watches and handbags under its license with the international star and heiress.
The Guess products and Maria Sharapova fragrance will also receive international roll out before the end of the current fiscal, and Parlux is looking forward to the introduction of a new Perry Ellis fragrance, Perry 18, in summer 2006.
Despite its prospects, the company announced in July that it is considering a number of strategic alternatives to boost shareholder value, and is not discounting a potential sale.