Parlux Fragrances

Parlux Fragrances, Inc. (PARL), which has no debt, offers an attractive forward P/E ratio of 7. The company’s price-to-book is at 0.62, well below the industry average of 1.3.

Company Description

Parlux Fragrances is a Florida-based manufacturer of designer fragrances under the brands of Paris Hilton, Jessica Simpson, GUESS?, Nicole Miller, Natori, Queen Latifah, XOXO, Ocean Pacific (OP), Andy Roddick, and Fred Hayman Beverly Hills. The company also has licenses for Paris Hilton watches, cosmetics, sunglasses, handbags and small leather accessories.

Parlux, a Zacks #1 Rank (strong buy), distributes its products in the U.S. through department and specialty stores and internationally to more than 90 countries through department stores and perfumeries.

Recent Events

The company just announced the signing of a worldwide licensing agreement with Marc Ecko Enterprises to develop and market a line of prestige fragrances for men and women.

Parlux management stated that Marc Ecko is the global leader in youth culture, adding that his hip lifestyle brand is remarkably exciting and always innovative. “With the Marc Ecko addition to our fragrance portfolio, Parlux Fragrances, Inc. will target yet another consumer group,” said Neil Katz, Chairman and CEO of Parlux Fragrances. “We see Marc Ecko's appeal as worldwide and a key part of our strategic plan. We believe Parlux is setting in motion dynamic initiatives by introducing brands that will appeal to a diverse and broad audience of consumers."

Robust Quarterly Results

Parlux Fragrances saw a solid fiscal second quarter. Earnings per share of 17 cents surpassed the year-prior 10 cents. Sales grew 40% on a year-over-year basis.

Consensus Estimates are on the Rise

Analysts are calling for earnings of 32 cents per share for the year ending March 2009. Three months ago, the consensus estimate was at 28 cents per share.

Value Fundamentals

The company has no debt and offers an attractive forward P/E ratio of 7. The company’s price-to-book is at 0.62, well below the industry average of 1.3.

Read the full analyst report on PARL