This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Celebrity Scents Fall Out of Style: So Over It

But the craze, while not on its way out, seems to be on its way down. The average celebrity fragrance brought in $2.6 million in sales last year, down from $8 million in 2005, according to NPD.

"Celebrity fragrances were driving the category a while back, but they've been in decline the past few years," Grant says. "No new celebrity fragrances really hit the way 'Glow' did."

At this point, consumers are a little embarrassed to buy a perfume associated with a celebrity. "On blind scent tests many of these fragrances test extremely well; they're designed to be the least offensive and offer the broadest appeal," Grant says. "But when the celebrity is associated with it, you start to see a different reaction."

Take Parlux Fragrances (PARL), for example. It's arguably the most celebrity-focused fragrance company in the U.S., marketing scents attached to actress Queen Latifah (Queen), singer Jessica Simpson (Jessica's Fancy and Fancy Love), tennis star Andy Roddick (Andy Roddick) and socialite Paris Hilton (Paris Hilton, Paris Hilton for Men, Heir, Heiress, Just Me, Can Can, Fairy Dust and Siren). The company lost $2.5 million in the June quarter, after losing $4.3 million in the year that ended March 31. That's quite a reversal from the March 2006 fiscal year, when it had a $22.7 million profit.

Last month, Parlux said it had exceeded the limit on a line of credit from Regions Financial (RF - Get Report) by $6.1 million.

To be fair, the fragrance market as a whole has taken a recent hit. U.S. consumers spent 10% less on prestige fragrances in the first half of this year than they did in the first half of 2008, according to NPD.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
EL $78.74 1.96%
DWA $20.15 3.60%
EVP $11.93 1.40%
RF $9.34 1.41%
RDEN $11.47 5.91%

Markets

Chart of I:DJI
DOW 16,351.38 +293.03 1.82%
S&P 500 1,948.86 +35.01 1.83%
NASDAQ 4,749.9790 +113.8740 2.46%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs