Parlux Fragrances CEO resigns due to ‘philosophical differences,’ company founder takes over

Parlux Fragrances CEO resigns, founder takes helm

FORT LAUDERDALE, Fla. — Parlux Fragrances Inc. on Tuesday said its chairman and CEO resigned due to “philosophical differences regarding the future direction of the company.”

The company named its founder to take his place.

Parlux also said higher-than-expected returns reduced fiscal third-quarter sales below previous estimates and forecast a net loss for the period.

Neil J. Katz, who led Parlux since July 2007, is expected to remain with the company as a director and consultant.

Company founder and former Chairman Frederick E. Purches is taking over the company’s leadership. Purches was president and CEO of Helena Rubenstein/Georgio Armani Fragrances before starting Parlux more than 20 years ago.

Parlux makes fragrances bearing the names of celebrities including Paris Hilton, Queen Latifah and Jessica Simpson. Its scents also bear the names of Guess, Natori, designer Marc Ecko and tennis star Andy Roddick.

The company said it expects to post its fiscal third-quarter results on Feb. 3. It said larger-than-expected product returns in the U.S. reduced net sales for the final three months of 2009 to about $50 million, from the previously announced estimate of $52 million. Parlux said it expects to post a loss for the quarter of about $5 million.

Shares of Parlux closed Tuesday down 3 cents at $1.82. The stock has changed hands between 59 cents and $2.94 in the past 52 weeks.