When I last looked at ParluxFragrances (NASDAQ:PARL) a year ago, the company was firing on all cylinders. Sales were accelerating and margins were improving, the result of which was a stock that had rocketed by more than 500% during the preceding 12 months. Since then, its stock has risen an additional 50%, well outpacing market averages. Let's take a look at its latest results to see what has investors so excited.

Parlux continues to see stellar top-line growth, with revenues in the second quarter increasing 73.1% compared with the same period a year ago. Through the first half of this fiscal year, sales have increased by 60%. Two brands that continue to drive growth are its Paris Hilton and Guess? (NYSE:GES) line of fragrances.

For evidence that the iconic Guess? brand is back in a big way, look no further than a 12-month snapshot of its high-flying stock. No doubt, this renewed popularity has trickled over to Parlux's fragrances. And Parlux continued to hit the jackpot when it inked a licensing agreement with Paris Hilton. "Paris Hilton for Women" was just launched in the winter of 2004, but during fiscal 2005 the brand already accounted for 11% of its net sales. The strong customer response to this product led Parlux to release a second Paris Hilton fragrance called "Just Me."

Additionally, this Christmas season, shoppers will have the opportunity to purchase a Parlux limited edition Paris Hilton watch. But if you're one of those who desires a dial with the society princess, you'd better bring your checkbook -- the company's latest 10-K filing suggests that the one-of-a-kind watches will retail in the neighborhood of $50,000.

Beyond its revenue growth, the company also has improved gross margins impressively. In the latest quarter, this metric improved by 12.5 percentage points to 56.5%. As a result of strengthened profitability and high double-digit revenue growth, its earnings for the quarter came in at $0.43 per share -- an 83% increase compared with the year-ago period.

Barring an economic meltdown, Parlux is confident it will meet its full-year targets. With analysts projecting that it will earn $1.91 for the current fiscal year, at the recent price of nearly $30, its stock is currently trading at roughly 16 times estimated earnings. That's compared with expected earnings growth of 25% over the long term. When you consider Parlux's outstanding top-line growth, improving margins, and innovative product launches, it looks like this is still a good investment you can follow your nose to.

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Fool contributor Jeremy MacNealy does not own shares of any companies mentioned.