Parlux has high expectations for Q3 results

Celebrity and designer fragrance manufacturer Parlux Fragrances has announced an estimated 3% increase in net sales over the third quarter ending 31 December 2009.

The company, which produces fragrances for the likes of US celebrity Paris Hilton and tennis star Andy Roddick, estimated unaudited net sales to hit $48.5m for the third quarter, highlighting a 3% rise over the $47.3m reported in the comparable period of 2008. The results excluded inventory costs for the Guess? fragrance, which was sold at cost to Coty, the new licensee for the fragrance range, which amounted to approximately $3.5m.

Chairman and ceo of Parlux Fragrances, Neil Katz said, “In this difficult economy the US prestige fragrance industry continued to struggle. However, we did see positive trends in the international and mass market channels. Although our sales increase was not as high as expected, I am pleased that our sales grew versus last year, and were much stronger than the trends in the fragrance category. Despite the expiration of the Guess? license, we remain optimistic that our new brands and product launches in the upcoming year will provide a platform for growth and positive results.”