Although the company added that the announcement could end without any specific action being taken, it added that it would continue to consult its financial advisors - Citigroup and Oppenheimer - so long as the matter remained opened for discussions.
The company also said that it does not expect to disclose developments with respect to the plans unless its board of directors has approved a definitive transaction.
Parlux, which is the license holder to big fragrance names such as Perry Ellis XOXO, Ocean Pacific and tennis star Andy Roddick, has hit the big-time in the past year with its licensing agreement to media figure and heiress Paris Hilton.
A major success with its Paris Hilton perfume range has led the company to forge further licensing agreements for beauty accessories, including Paris Hilton handbags and watches.
Parlux penned the deal with Paris Hilton to promote fragrances and luxury goods over a four year period, last June. The deal has proved a wise move. Of the company's $100 million sales in the past year, $11 million has been derived from Paris Hilton branded products. Sales were also up 32 per cent on the previous year.
In May of this year, Wedbush Morgan Securities recommended the shares as a buy on May 24, after which shares jumped over 13 per cent.
In June Wedbush Morgan reiterated its 'buy' rating for Parlux shares rasing the target price from $28 per share to $33. At the time, the investment company noted that Parlux is likely to sustain further growth this year with a number of new product launches. The brief also said that strong support from retailers is likely to drive financial results higher than expected.
However, this week the investment company downgraded its rating from 'buy' to 'hold', citing the fact that the Parlux shares were now trading on or around the $33 target it had set last month.
The success of the company has led many analysts to acknowledge that the company holds huge potential for further expansion, but with Coty only this week announcing the acquisition of the Unilever fragrance brands to become the world's largest perfume company, competition is really hotting up in the sector.