updated 5/25/2011 4:48:51 PM ET 2011-05-25T20:48:51

FORT LAUDERDALE, Fla., May 25, 2011 (GLOBE NEWSWIRE) -- Parlux Fragrances, Inc. (Nasdaq:PARL) today announced its sales results for the quarter and the year ended March 31, 2011.

Net sales for the final quarter of the year were $28.9 million compared to $17.7 million in the prior year, an increase of 63%. Net profits were $184 thousand, or $0.01 per share compared to a loss of $9.8 million or ($0.48) per share in the same prior year period.

Net sales for the full fiscal year were $123.0 million compared to the prior year of $148.1 million. The prior year included net sales of $43.0 million of GUESS brand products, which are no longer sold by the Company. Excluding GUESS, prior year net sales were $105.1 million and on a comparable basis current year net sales increased more than 16% over prior year. Our Net Profits were $1.2 million or $0.6 per share, compared to a loss in the prior year of $14.8 million or ($0.73) per share.

Mr. Fred Purches, Chairman and CEO, commented, "We are extremely pleased with the substantial progress we have made in increasing sales of our basic business while launching one new iconic brand, Rihanna, to bring our total comparable sales increase (excluding GUESS) to 16% for the year."

Mr. Purches continued, "We reduced our Operating Expenses by $20.0 million compared to prior year and have been able to achieve a $26.0 million dollar improvement in Operating Profit, reverting from a loss of $23.5 million in the prior year to an Operating Profit of $2.5 million in the current year. Our balance sheet is strong, with $20.5 million in cash, no bank borrowings, and a book value of $4.91 per share. We are optimistic about our future performance."

Conference Call

The Company will hold a conference call on Thursday, May 26, 2011, at 10:00 a.m. (EDT) to discuss the Company's year-end results and to provide additional outlook on the next quarter.  To participate, please call Toll Free: 800-894-5910 or International: 785-424-1052. Conference ID: 7PARLUX. A replay of the conference call will be available following the conference call, until 11:59 p.m. (EDT) June 8, 2011. To access the replay, please go to our website www.parlux.com.

ABOUT PARLUX FRAGRANCES, INC.

Parlux Fragrances, Inc. is a manufacturer and international distributor of prestige fragrances and beauty related products. It holds licenses and sublicenses to manufacture and distribute the designer fragrance brands of Paris Hilton, Jessica Simpson, Nicole Miller, Josie Natori, Queen Latifah, Marc Ecko, Rihanna, Kanye West, Vince Camuto and Fred Hayman Beverly Hills. 

Certain Information Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, regarding, among other things, our plans, strategies and prospects, both business and financial. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company or its industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties are discussed in the Company's periodic reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company undertakes no obligation to update forward-looking statements that may be made herein or otherwise to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

PARLUX FRAGRANCES, INC. AND SUBSIDIARIES
         
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except number of shares and per share data)
         
         
  Three Months Ended  Twelve Months Ended 
  March 31, March 31,
  2011 2010 2011 2010
  (Unaudited)    
         
Net sales:         
Unrelated customers  $ 19,262  $ 7,519  $ 70,421  $ 93,861
Related parties 9,654 9,062 51,162 49,615
Sales - expired license  -- 1,136 1,423 4,626
   28,916  17,717  123,006  148,102
         
Cost of goods sold:        
Unrelated customers 7,634 5,089 29,419 44,942
Related parties 4,529 5,332 24,024 29,147
Cost of sales - expired license  -- 6,949 1,422 11,871
   12,163  17,370  54,865  85,960
         
         
Operating expense  16,385  16,198  65,668  85,651
         
Operating income (loss)  368  (15,851)  2,473  (23,509)
         
Interest (expense) income, net  (197)  47  (597)  (236)
Foreign exchange loss   (2)  --   (1)  (1)
Income (loss) before income taxes   169  (15,804)  1,875  (23,746)
         
Income tax provision (benefit)  (15)  (5,969)  633  (8,987)
         
Net income (loss)  $ 184  $ (9,835)  $ 1,242  $ (14,759)
         
         
Income (loss) per common share:        
Basic  $ 0.01  $ (0.48)  $ 0.06  $ (0.73)
         
Diluted  $ 0.01  $ (0.48)  $ 0.06  $ (0.73)
         
Weighted average number of shares outstanding:        
Basic 20,528,856 20,347,145 20,497,701 20,330,395
         
Diluted 20,889,682 20,347,145 20,653,305 20,330,395
         
CONDENSED CONSOLIDATED BALANCE SHEET DATA    
(In thousands)    
         
  March 31, March 31,    
  2011 2010    
         
         
Cash and cash equivalents  $ 20,511  $ 17,579    
Trade receivables, net  24,758  14,245    
Inventories  37,373  41,846    
Other current assets  21,352  29,703    
Current Assets  103,994  103,373    
         
         
Equipment and leasehold improvements, net  1,844  2,679    
Trademarks and licenses, net  4,195  4,654    
Other assets  2,673  3,626    
Total Assets  $ 112,706  $ 114,332    
         
Borrowings  $ --   $ --     
Other current liabilities  10,975  14,532    
Current Liabilities  10,975  14,532    
         
Total Liabilities  10,975  14,532    
         
Stockholders' Equity  101,731  99,800    
Total Liabilities and Stockholders' Equity  $ 112,706  $ 114,332    
CONTACT: Parlux Fragrances, Inc.
         (954) 316-9008
         Frederick E. Purches, Ext. 8116
         Raymond J. Balsys, Ext. 8106
         Web site: http://www.parlux.com

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