Perfumania Holdings, Inc. (PERF) has reported a 77.28 percent plunge in profit for the quarter ended Oct. 29, 2016. The company has earned $0.69 million, or $0.04 a share in the quarter, compared with $3.03 million, or $0.20 a share for the same period last year.
Revenue during the quarter dropped 11.83 percent to $125.18 million from $141.98 million in the previous year period. Gross margin for the quarter expanded 66 basis points over the previous year period to 47.35 percent. Total expenses were 97.97 percent of quarterly revenues, up from 96.57 percent for the same period last year. That has resulted in a contraction of 141 basis points in operating margin to 2.03 percent.
Operating income for the quarter was $2.54 million, compared with $4.88 million in the previous year period.
Michael Katz, president and chief executive officer of Perfumania, commented, "In the third quarter we saw a continuation of many of the trends we have experienced over the last several quarters, most notably a cautious consumer sentiment across our retail network coupled with a highly promotional retail environment. Despite these challenges, we were able to maintain our overall gross margin, improve our cost structure and begin to address key strategic areas noted for improvement, including refocusing our brand projection and marketing and take additional steps to drive customer acquisition and retention."
Operating cash flow remains negative
Perfumania Holdings, Inc. has spent $25.21 million cash to meet operating activities during the nine month period as against cash outgo of $22.22 million in the last year period.
The company has spent $2.62 million cash to meet investing activities during the nine month period as against cash outgo of $5.25 million in the last year period.
Cash flow from financing activities was $24.30 million for the nine month period, down 10.74 percent or $2.93 million, when compared with the last year period.
Cash and cash equivalents stood at $2.12 million as on Oct. 29, 2016, up 64.34 percent or $0.83 million from $1.29 million on Oct. 31, 2015.
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