Perfumania sales drop on lower mall traffic
Michael Katz, CEO of Perfumania Holdings Inc., with a bottle of Rebelle Rihanna perfume. Vince Camuto's fragrance and Paris Hilton's Dazzle fragrances in the company's Bellport offices on April 4, 2013. Credit: Newsday / Audrey C. Tiernan
Perfumania Holdings Inc. Friday reported lower sales and profit for the fourth quarter amid weak sales at the company’s mall stores.
The Bellport-based retailer and wholesale distributor of fragrances posted net income of $2.3 million, or 15 cents per diluted share, for the quarter ended Jan. 30. That compared to $5.5 million, or 36 cents per share, in the year-earlier period.
Net sales fell 11.5 percent to $162.5 million.
Michael Katz, Perfumania’s president and chief executive, said the sales decline was “largely attributable to lower foot traffic at stores, in particular those located in malls, and the ongoing slowdown in tourist-dependent areas, such as Florida, due to the devaluation of many major foreign currencies.”
Katz said the company closed 10 underperforming stores in the fourth quarter and expects to close others “as we approach upcoming lease renewals.”
In the fiscal year ended Jan. 30, Perfumania closed 16 stores in total, while opening nine.
Shares of Perfumania gained 10 cents to close Friday at $1.05 on the Nasdaq Capital Market.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
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