UPDATE 1-Parlux posts wider Q3 loss

* Q3 EPS $0.27 vs $0.22 yr ago

* Q3 sales $50.3 mln vs $47.3 mln

* Sees cautious spending to help improve results

Feb 3 (BestGrowthStock) – Parlux Fragrances Inc (PARL.O: ) posted a
wider quarterly loss, hurt by heavy investment in its U.S.
department store segment and lower-than-expected consumer
spending.

Parlux, which holds licenses for brands including Paris
Hilton, Jessica Simpson and Guess, posted a loss of $5.4
million, or 27 cents a share, compared with a loss of $4.5
million, or 22 cents a share, a year ago.

The loss includes inventory provisions relating to the
termination of the Guess license and slower moving brands,
Parlux said.

Revenue rose 6 percent to $50.3 million.

“Consumer spending did not improve as anticipated. Our
department store sales for the important third quarter were
down 30 percent compared to prior year,” Chief Executive
Frederick Purches said in a statement.

Even though discretionary advertising spending was reduced,
its committed advertising expenses could not be lowered enough
to overcome the downtrading from that segment due to the severe
economic conditions, the CEO said.

“With more cautious spending commitments in the department
store segment, the company expects improved results,” he said.

Parlux’s former Chief Executive Neil Katz resigned last
month citing “philosophical differences regarding the future
direction of the company.” [ID:nSGE60P0EM]

Shares of the Fort Lauderdale, Florida-based company closed
at $1.71 Wednesday on Nasdaq.

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(Reporting by Vidya Lakshmi in Bangalore; Editing by Gopakumar
Warrier)

UPDATE 1-Parlux posts wider Q3 loss