Rihanna’s new fragrance has failed to give Parlux the profit margins it had hoped for, with the company reporting that sales fell by almost five per cent in the first quarter.
Parlux recorded sales of $US22.9 million in Q1 of this year, compared to $US24.1 million for the same period last year. In turn, net profit for the quarter fell from $US 232,000 last year to negative $US2.9 million this year.
The company is attributing the figures to increase spending on advertising and promotions, which is indicative of the competitive US fragrance market at the moment.
Rihanna’s signature fragrance was a big contributing factor in Parlux’s growth in sales for the last quarter of 2010, however, income from the scent has since fallen by $US4 million.
Despite the largely negative results, Frederick Purches, Parlux chairman and CEO says the company was cautiously optimistic that the brand and the total company will achieve sales targets in the current fiscal year”.
