Paris and Jessica can still count fragrance as successful endeavors, according to the most recent financial report from Parlux. For the third quarter ended Dec. 31, 2008, net sales increased 6% to $47.3 million. Operating expenses leaped 42% to $31.1 million, according to the company.
For the nine-months ended Dec. 31, 2008, net sales jumped 9% to $123 million. Operating expenses increased 43% to $73.2 million, said Parlux.
Neil Katz, company chairman and chief executive officer, said, "Strategically, our focus on strengthening our position in U.S. department stores has been a success. The strategy has been expensive financially, with committed advertising investments which could not be reduced in a retail environment which plummeted in the November/December period. Additionally, the global economic turmoil, compounded with a volatile U.S. dollar, negatively impacted our international sales."
Mr. Katz continued, "We have successfully launched Jessica Simpson 'Fancy' and Paris Hilton 'Fairy Dust,' and have positioned ourselves for future growth with launches of Queen Latifah and Marc Ecko planned for Summer and Fall 2009. Looking to the future, we continue to review and reduce costs in all aspects of our operations and staffing, for which we believe the benefit will commence next quarter and continue through next fiscal year. We expect the final quarter of this fiscal year to be profitable, assuming no further major deterioration in the global economy."