When I last looked at ParluxFragrances
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?
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.
Fools, now is the time to open your hearts and wallets to worthy causes! Please support our five Foolish charities at www.foolanthropy.com.
Fool contributor Jeremy MacNealy does not own shares of any companies mentioned.