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Parlux Fragrances will return to Dillard's shelves after an exile of several years.
Other stores, including Macy's, Belk and Boscov's, will also get the scent. But Dillard's signifies success for CEO Neil Katz, who's been working for more than a year to regain the confidence of investors, retailers and the perfume lines Parlux represents.
"They are looking at us and saying this is a different Parlux -- this is a Parlux that supports its businesses," Katz said in a conference call last month. "We can have Dillard's reconsider doing business with Parlux after dismissing us several years ago and vowing to never take us back."
Named Parlux chief in May 2007, Katz took over a troubled company. He assumed the lead after the former chief was forced out and after the stock had fallen by nearly two-thirds in a year.
After taking over, Katz improved earnings, moved Parlux to classier headquarters in Fort Lauderdale and signed celebrities like singer Simpson and rapper-actress Queen Latifah.
Katz "brought a significant financial and operational discipline," said analyst Rommel T. Dionisio of Wedbush Morgan Securities in Los Angeles. "He cut costs, eliminated facilities. He returned the company to profitability."
A lifelong New Yorker who now lives in Aventura, Katz came with beauty industry credentials. He was president of Liz Claiborne Cosmetics, where he created the Curve fragrance line, and later of Revlon's Beauty Care division, building a hair care business that included Flex.
Katz's biggest impact at Parlux will be his ability to bring in new business, Dionisio said. Most significant could be Simpson. There's already a strong "preseason buzz, hype" around the scent, he said.
Katz expects Fancy will start appearing in stores in the second week of August. The floral scent sells at $59 for a 3.4-ounce bottle, or $49 for half the size.Simpson, who will be touring to support a new album, plans to make a number of personal appearances for Fancy, Katz said.
Parlux is planning to spend millions to launch the product. Simpson will represent Fancy in a Macy's TV commercial airing from October to Christmas, he said. "Being on television constantly under the great name of Macy's is something," Katz said. The fragrance will be in print ads and scent strips as well.
Simpson, who named Fancy, is part of Parlux's plan to broaden its product lines. Fragrances linked to celebrity heiress Paris Hilton and designer Guess? together represented 91 percent of gross sales in fiscal 2008.
Hilton, whose first scent with Parlux came out in 2004, remains very involved, Katz said. Hilton reviews everything related to her fragrances, comes up with ideas and spends time working to make it happen: "She's a trouper," he said.
"Everyone wants to have an image of her as this playgirl. I look at her as a business partner."
To propel growth, Katz plans to enlist other celebrities who will draw different followings, whose customer bases don't overlap. "The choices are not just made on who's the most famous," Katz said.
Queen Latifah, for instance, brings different audiences than Hilton or Simpson, who Parlux calls America's sweetheart. Latifah appeals to more than her African-American fans because of the broad scope of her work, which includes hip-hop, film, the Jenny Craig weight loss program and CoverGirl cosmetics. "Latifah has a passionate following that crosses race, age and gender boundaries," Parlux said in announcing her signing.
And Parlux sought yet another set of customers with designer Josie Natori, a high-end lingerie brand, "to establish business in the Neimans and Sakses of the world," Katz said.
Even before Katz, Parlux planned to diversify and added lines such as Maria Sharapova, said Glenn Gopman, who has been on Parlux's board of directors since 1995.
But Katz is reaching to a higher shelf of celebrities, said Gopman of Levi & Gopman P.A. certified public accountants in Aventura.
Last month, Parlux reported 2008 profit of $5 million from continuing operations, compared with a loss of $28 million the previous year. Sales rose to $153.7 million from $134.4 million a year earlier. And Katz says the infrastructure exists to potentially reach $300 million in sales.
The stock, though it reached a closing high for the past year of $5.55 Friday, isn't anywhere near its peak of $18.96 in February 2006.
But Gopman, who owns 61,000 shares, thinks Katz has built a strong foundation.
Katz has brought a more corporate structure to Parlux and a different style. He is a consensus builder, a listener -- and that has built stronger relationships with licensors, Gopman said. "We do a much better job of that than we ever did before.
"I'm very pleased with what he's done restructuring the company," he said.
Margie Plunkett can be reached at mplunkett@sun-sentinel.com or 954-356-4663.
Singer- rapper- actress Queen Latifah is poised to launch a fragrance with the company in the fall of 2009.
Simpson's first perfume, Fancy, is described by Parlux as feminine, versatile and memorable.
Hilton's brands have garnered $90 million in revenue for Parlux and continue to be a mainstay for the company. Her next scent, Can Can, will debut in October.
The pro tennis player from Boca Raton signed a license agreement to market a cologne franchise with the company in 2004. The cologne is described as clean and airy fresh with a subtle warmth and sexiness.
Age: 64
Previous posts: president, Liz Claiborne Cosmetics; president, Revlon's Beauty Care Division; president, Strategem Creative Marketing Corp.; president and CEO, Gemini Cosmetics Inc.
Parlux Fragrances Launch Schedule
Diversifying away from its reliance on Paris Hilton fragrances is an important part of the strategy at Parlux.
Celebrity or designer Fragrance Date
Jessica Simpson Fancy August 2008
Paris Hilton Fairy Dust October 2008
Nicole Miller Frenzy January 2009
Guess by Marciano, men men's scent January 2009
Josie Natori Natori Fall 2009
Queen Latifah women's scent Fall 2009
Source: Parlux
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