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Perfumania Holdings Inc. Reports Operating Results (10-Q)

September 18, 2013 | About:
10qk

10qk

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Perfumania Holdings Inc. (PERF) filed Quarterly Report for the period ended 2013-08-03.

Perfumania Holdings, Inc. has a market cap of $74.2 million; its shares were traded at around $4.85 with and P/S ratio of 0.10.

Highlight of Business Operations:

Perfumania's retail sales decreased from $63.4 million in the thirteen weeks ended July 28, 2012 to $61.6 million in the thirteen weeks ended August 3, 2013. The average number of stores operated was 334 in the thirteen weeks ended August 3, 2013 compared with 343 in the comparable period last year. Perfumania's comparable store sales decreased by 1.7% during the thirteen weeks ended August 3, 2013 from the same period in 2012. Comparable store sales measure sales from stores that have been open for one year or more. We exclude stores that are closed for renovation from comparable store sales from the month during which renovation commences until the first full month after reopening. The average retail price per unit sold during the thirteen weeks ended August 3, 2013 was unchanged from the prior year's comparable period, while the total number of units sold decreased by 3.0%. We attribute the decrease in the number of units sold to a decrease in store traffic.

Perfumania's retail gross profit dollars for the thirteen weeks ended August 3, 2013 increased by 0.2% to $29.2 million compared with the comparable period in 2012. For these same periods, Perfumania's retail gross margins were 47.4% and 46.0%, respectively. The increase in gross margin is attributable to higher selling prices.

Selling, general and administrative expenses include payroll and related benefits for our distribution center, sales, store operations, field management, purchasing and other corporate office and administrative personnel; rent, common area maintenance, real estate taxes and utilities for our stores, distribution centers and corporate office; advertising, consignment fees, sales promotion, royalties, insurance, supplies, freight out, and other administrative expenses. Selling, general and administrative expenses were $54.9 million in the thirteen weeks ended August 3, 2013, compared to $54.8 million in the thirteen weeks ended July 28, 2012. Included in selling, general and administrative expenses are expenses in connection with the Services Agreement with Quality King, which was less than $0.1 million during the thirteen weeks ended August 3, 2013 and $0.2 million for the thirteen weeks ended July 28, 2012.

Wholesale sales increased by 33.8% from $62.1 million in the twenty-six weeks ended July 28, 2012 to $83.1 million in the twenty-six weeks ended August 3, 2013. Parlux's sales increased by $16.3 million primarily because Parlux was acquired on April 18, 2012, and therefore the twenty-six weeks ended July 28, 2012 include only approximately fourteen weeks of Parlux's operations. The majority of Parlux's Mothers Day sales are realized in February and March. Excluding the results of Parlux, the increase in wholesale sales of $4.7 million is the result of higher customer demand and additional brand distribution by QFG during the twenty-six weeks ended August 3, 2013 compared to the twenty-six weeks ended July 28, 2012.

Perfumania's retail gross profit for the twenty-six weeks ended August 3, 2013 increased by 3.0% to $57.0 million compared with the comparable period in 2012. For these same periods, Perfumania's retail gross margins were 47.3% and 45.5%, respectively. The increase in gross margins is attributable to higher selling prices.

Read the The complete Report

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10qk
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