Close

Perfumania Holdings, Inc. (PERF) Posts Smaller Q3 Profit on Lighter Revenue

December 13, 2016 10:32 AM EST

Perfumania Holdings, Inc. (NASDAQ: PERF) reported Q3 EPS of $0.04, versus $0.20 reported last year. Revenue for the quarter came in at $125.18 million, versus $141.98 million reported last year.

Michael Katz, President and Chief Executive Officer of Perfumania, commented, “In the third quarter we saw a continuation of many of the trends we have experienced over the last several quarters, most notably a cautious consumer sentiment across our retail network coupled with a highly promotional retail environment. Despite these challenges, we were able to maintain our overall gross margin, improve our cost structure and begin to address key strategic areas noted for improvement, including refocusing our brand projection and marketing and take additional steps to drive customer acquisition and retention.

“Customer traffic at many of our retail locations remained challenged during the third quarter, predominantly at store locations in B and C rated malls and tourist-dependent areas, including Puerto Rico and Florida. In order to navigate the difficult retail environment, throughout fiscal 2016 we have focused on optimizing our retail footprint by closing marginal and underperforming Perfumania stores and year-to-date, we have closed 21 locations and expect to close additional stores in the balance of fiscal 2016. Such store closures continue to impact retail net sales, though we are moving toward a more profitable overall revenue mix from our remaining retail footprint. In addition, by focusing on our best locations we are better allocating operating, marketing, merchandising and financial resources. On an overall basis, Perfumania retail stores sales declined 5.7%, which reflects the year-over-year decline in the store base, while comparable store sales declined by 1.7%, which largely reflects the weaker discretionary spending by consumers since earlier this year.

“We have initiated a range of operational efficiencies and building new and diversified revenue sources and are in the process of identifying other strategies intended to further promote our omni-channel capabilities, grow our e-commerce sales, elevate our brand appreciation and increase foot traffic and transaction volume at our stores. These programs are being aided by the completion of the first phase of our technology initiative. As a result, we have a more efficient technology infrastructure and better support to continue to expand our omni-channel capabilities and further evolve and upgrade the guest experience at our retail locations, improve our e-commerce site performance and cross-promotion and cross-sale efforts while creating a superior, seamless consumer experience across all channels.

Mr. Katz, concluded, “We believe our focus and execution against our key priorities of driving improved profitability and operational efficiencies, right sizing our retail footprint, transitioning our brand portfolio, improving our customer experience, investing in the growth and development of our brands and achieving added benefits from our recent IT systems implementations, is appropriately positioning the Company.”

For earnings history and earnings-related data on Perfumania Holdings, Inc. (PERF) click here.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Earnings

Related Entities

Earnings, Definitive Agreement