Parlux eyes continued growth with Vince Camuto licensing agreement

Parlux has signed a partnership agreement with women’s footwear brand the Camuto Group following a successful collaboration on the Jessica Simpson fragrance.

The companies said that the partnership marked the next step for the development of the Vince Camuto heritage line which will result in the launch of a signature fragrance to embody the brand’s line of shoes, handbags and accessories.

“Delving into fragrance is the exciting next phase on our way to building a complete lifestyle brand,” said company founder Vince Camuto,

“The successful collaboration on the Jessica Simpson fragrance franchise exemplified the level of commitment and expertise of the entire Parlux team and we look forward to working together on this new project,” he added.

Huge potential for development

Fred Purches, who was appointed the new CEO of Parlux back in January of this year, said he believed the Vince Camuto brand had huge potential for further development, leveraging on global recognition.

The new fragrance is expected to hit stores in the US in the fall of 2011 and is described as a ‘contemporary and refined fragrance’ by its developers.

After an extremely difficult year in 2009 for all luxury fragrance manufacturers, the last few quarters have shown a marked turnaround for the segment and for Parlux in particular.

Sales increase but profits remain elusive

However, this improvement has not helped boost profits. Back in February the company revealed third quarter results showing an increase in sales but remains in the red.

Net sales grew by 6 per cent to $50.3m, up from $47.3m in the corresponding period last year, but net losses also grew during the period, up from a loss of $4.5m in the corresponding quarter of 2008, to reach a negative figure of $5.4m.

For the nine-month period up to December 31, the company said net sales were $130.4m, compared to $123.0m in the same prior year period, also an increase of 6 percent.

In the same 9 month period the net loss was $4.9m compared to $5.8m in the comparable period of the prior year, a decrease of just over 18 percent.