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Parlux Fragrances (PARL)

You may not have heard of Parlux Fragrances, but you probably know its products. The Fort Lauderdale firm makes perfumes and other beauty products under licensing agreements for everyone from Perry Ellis and Guess? to tennis stars Maria Sharapova and Andy Roddick. The deals have turned Parlux into a hot player in the $63 billion personal-products industry, with returns outpacing those of better-known rivals like Avon Products, Estee Lauder, and Revlon. Over the past three years, Parlux sales have increased 28% on average, to $100.4 million, in fiscal 2005, which ended that Mar. 31, while profits have soared an average 50% a year, to $10.8 million, over the same period. Seeking to cash in on the appetite for all things Paris Hilton, Parlux recently announced another licensing agreement to market sunglasses under the Hilton name, to accompany existing Parlux/Hilton lines for watches, handbags, small leather goods, and cosmetics.

Company Info

2005 Rank

NR

Market Value*
($ Millions)

244.1

Sales*
($ Millions)

155.5

Sales Growth
(3-yr. avg. annual)

28.6 %

Profits*
($ Millions)

17.6

Profit Growth
(3-yr. avg. annual)

50.0 %

Return on Inv. Capital (3-yr.)

14.9 %

Share Price
12-Mo. Hi/Lo

38/15

Share Price
As of 4/28/06

27

Return on Equity

20.9 %

P/E Ratio

16

No. of Employees

134

Industry Personal Products
CURRENT
MARKET INFO

PARL >

COMPANY WEB SITE >
Location Fort Lauderdale, Fla.
Phone 954 316-9008
*Trailing 12 months
Stock price data as of 4/28/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Parlux Fragrances engages in the creation, design, manufacture, distribution, and sale of fragrances and beauty related products. The company holds licenses to manufacture, distribute, and sell fragrances and grooming items of Perry Ellis, Paris Hilton, Ocean Pacific, XoXo, Fred Hayman Beverly Hills, "273 Indigo," and Jockey. It also has license agreements with Paris Hilton Entertainment to develop, manufacture, and distribute cosmetics, watches and other time pieces, handbags, purses, wallets, and other small leather goods under the Paris Hilton name; and Gund to develop, manufacture, and distribute children's fragrances and related products on a worldwide basis under the babyGund trademark. In addition, Parlux's beauty-related products include soaps, shower gels, deodorants, body lotions, creams, and dusting powders. The company sells its products worldwide primarily through specialty stores, national department stores, and perfumeries. Parlux was incorporated in 1984 and is headquartered in Fort Lauderdale.


Data provided by Capital IQ
 
Ilia Lekach

Ilia Lekach, 57

Chairman and Chief Executive Officer


Total Compensation*

$ 560,000

Total Options Value*

$ 22,374,665

* Fiscal Year 2005


Executive Bio

Ilia Lekach has been CEO of Parlux Fragrances, a publicly traded manufacturer of fragrance and related products, since December, 1993, and chairman since November, 1990. He also serves as the president. Lekach served as the CEO and chairman of the board of Perfumania, a related public company based in Miami, and a leading specialty retailer of fragrances with approximately 250 retail outlets, until his resignation in April, 1994. He reassumed the positions of CEO and chairman in October, 1998. In February, 2000, Perfumania became a wholly owned subsidiary of E.com Ventures, whereby Lekach relinquished his executive positions in Perfumania, and became chairman and CEO of ECMV. Lekach is one of E.com Ventures' co-founders and was the CEO and chairman from incorporation in 1988 until his resignation in April, 1994, and also served as CEO and chairman from October, 1998, to February, 2004. Lekach also served as the CEO of Nimbus Group (now known as Taylor Madison), a publicly held company committed to the development of a private jet air taxi network, formerly known as Take To Auction.com, from January, 2002, to March, 2003, and as its chairman from October, 1999, to March, 2003. In August, 1996, Lekach became an officer and director of L. Luria & Son, a publicly traded specialty discount retailer. Lekach served as chairman of L. Luria from January, 1997, to August, 1997. He has been a director of Parlux Fragrances since February, 1989, and also served as its director from November, 1987, to November, 1988. He served as a director of E.com Ventures and a director of Nimbus Group since October, 1999. In August, 1996, ORM and its affiliates, of which Lekach was a principal, purchased a controlling interest in L. Luria, a catalog retailer with serious financial problems. In August, 1997, L. Luria filed Chapter 11 and has since been liquidated.


Management Team

Key Executives

Ilia Lekach; Frank A. Buttacavoli

Board Directors

Isaac Lekach; Esther Egozi Choukroun; Jaya Kader Zebede; David Stone; Glenn Gopman; Ilia Lekach; Frank A. Buttacavoli


Executive Data provided by Capital IQ