Parlux Announces Results for Third Quarter Ended December 31, 2008

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Symbol	Price	Change
PARL	2.21	+0.06

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FORT LAUDERDALE, FL--(MARKET WIRE)--Feb 9, 2009 -- Parlux Fragrances, Inc. (NasdaqGS:PARL - News) announced today its results for the three and nine-months ended December 31, 2008.

For the third quarter ended December 31, 2008, net sales increased to $47.3 million, compared to $44.5 million for the same prior year period, an increase of 6%. Operating expenses were $31.1 million, compared to $21.9 million for the same prior year period, an increase of 42%. Operating loss was ($7.4 million), compared to operating income of $0.5 million for the same prior year period. Net loss for the three months ended December 31, 2008, was ($4.5 million), compared to net income of $0.2 million for the same prior year period.

For the nine-months ended December 31, 2008, net sales increased to $123.0 million, compared to $113.3 million for the same prior year period, an increase of 9%. Operating expenses were $73.2 million, compared to $51.2 million for the same prior year period, an increase of 43%. Operating loss was ($9.6 million), compared to operating income of $3.9 million for the same prior year period. Net loss for the nine-months ended December 31, 2008, was ($5.8 million), compared to net income of $2.1 million for the same prior year period.

Neil Katz, Chairman and CEO, said, "Strategically, our focus on strengthening our position in U.S. department stores has been a success, with an 82% increase in sales for the third quarter ended December 31, 2008, compared to the same prior year period. The strategy has been expensive financially, with committed advertising investments which could not be reduced in a retail environment which plummeted in the November/December period. Additionally, the global economic turmoil, compounded with a volatile U.S. dollar, negatively impacted our International sales which declined by 34% compared to the same prior year period, further reducing our operating profit."

Mr. Katz continued, "For the nine-months ended December 31, 2008, we have maintained the 82% increase in U.S. department store sales reaching a level of $45 million which will provide positive support for our other business segments in the future. We have successfully launched Jessica Simpson 'Fancy' and Paris Hilton 'Fairy Dust,' and have positioned ourselves for future growth with launches of Queen Latifah and Marc Ecko planned for summer and fall 2009. Looking to the future, we continue to review and reduce costs in all aspects of our operations and staffing, for which we believe the benefit will commence next quarter and continue through next fiscal year. We expect the final quarter of this fiscal year to be profitable, assuming no further major deterioration in the global economy."

Conference Call

The Company will host a conference call on Monday, February 9, 2009, at 9:00AM (EST) to discuss the Company's quarterly results and to provide additional outlook on the next quarter. To participate, please call: Participant Toll Free: 866-852-2121 or Participant International: 416-695-9706 (no digital pin number is required). A replay of the conference call will also be available from Monday, February 9, 2009 after 1:00PM, until 11:59PM February 23, 2009. To access the rebroadcast, Digital Replay Toll Free: 800-408-3053 or Participant International: 416-695-5800 (Replay Passcode: 3280300).

About Parlux Fragrances, Inc.

Parlux Fragrances, Inc. is a manufacturer and international distributor of prestige products. It holds licenses for Paris Hilton, Jessica Simpson, GUESS?, Nicole Miller, Natori, Queen Latifah, Marc Ecko, XOXO, Ocean Pacific (OP), Andy Roddick, babyGund, and Fred Hayman Beverly Hills designer fragrances, as well as Paris Hilton watches, cosmetics, sunglasses, handbags and other small leather accessories.

Certain Information Regarding Forward-Looking Statements

This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of the Company or its industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These risks and uncertainties include, among others, future trends in sales, the Company's ability to maintain its current brands and licenses, the Company's ability to successfully introduce, acquire, or launch new brands, licenses, or products in a cost-effective manner, general economic conditions, Perfumania's ability to pay its accounts payable balance due to the Company, and continued compliance with the covenants in its credit facility. Additional risk factors are set forth in the Company's periodic reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

 
                 PARLUX FRAGRANCES, INC. AND SUBSIDIARIES

             CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                              (UNAUDITED)


                        Three Months Ended          Nine Months Ended
                           December 31,                December 31,
                    --------------------------  --------------------------
                        2008          2007          2008          2007
                    ------------  ------------  ------------  ------------

Net sales:

   Unrelated
    customers       $ 38,546,367  $ 35,055,318  $ 93,839,974  $ 65,493,977
   Related parties     8,746,155     9,488,470    29,148,863    47,783,702
                    ------------  ------------  ------------  ------------
                      47,292,522    44,543,788   122,988,837   113,277,679
                    ------------  ------------  ------------  ------------

Cost of goods sold:
  Unrelated
   customers          18,293,824    17,143,476    44,913,421    33,667,982
  Related parties      5,269,761     5,009,970    14,397,501    24,448,783
                    ------------  ------------  ------------  ------------
                      23,563,585    22,153,446    59,310,922    58,116,765
                    ------------  ------------  ------------  ------------


Operating expense     31,085,949    21,896,502    73,229,720    51,224,419
                    ------------  ------------  ------------  ------------

Operating (loss)
 income from
 continuing
 operations           (7,357,012)      493,840    (9,551,805)    3,936,495

 Interest income
  (expense), net          40,632      (217,067)      238,062    (1,071,394)
 Other income                  -             -             -       497,770
 Foreign exchange
  (loss) gain                (20)       11,875        (1,038)       10,034
                    ------------  ------------  ------------  ------------
(Loss) income from
 continuing
 operations before
 income taxes         (7,316,400)      288,648    (9,314,781)    3,372,905

Income tax benefit
 (provision)           2,780,232      (109,686)    3,539,617    (1,281,704)
                    ------------  ------------  ------------  ------------

(Loss) income from
 continuing
 operations           (4,536,168)      178,962    (5,775,164)    2,091,201
                    ------------  ------------  ------------  ------------

Discontinued
 operations:
  Income from
   operations of
   Perry Ellis
   fragrance brand             -         5,999             -        40,887
  Income tax
   provision
   related to Perry
   Ellis brand                 -        (2,280)            -       (15,537)
                    ------------  ------------  ------------  ------------

Income from
 discontinued
 operations                    -         3,719             -        25,350
                    ------------  ------------  ------------  ------------

Net (loss) income     (4,536,168)      182,681    (5,775,164)    2,116,551
                    ============  ============  ============  ============


Diluted (loss)
 income per common
 share:
    Continuing
     operations     $      (0.22) $       0.01  $      (0.28) $       0.10
    Discontinued
     operations             0.00          0.00          0.00          0.00
                    ------------  ------------  ------------  ------------
   Total            $      (0.22) $       0.01  $      (0.28) $       0.10
                    ============  ============  ============  ============

Weighted average
 diluted shares
 outstanding          20,503,489    20,754,364    20,607,321    20,532,613
                    ============  ============  ============  ============



                CONDENSED CONSOLIDATED BALANCE SHEET DATA

                                  December 31,    March 31,
                                      2008          2008
                                  ------------  ------------

                                  $  9,889,249  $ 21,408,167
Cash and cash equivalents           39,286,413    34,693,173
Trade receivables, net              60,460,035    48,068,280
Inventories                         24,027,067    18,163,338
                                  ------------  ------------
Other current assets               133,662,764   122,332,958
  Current Assets

Equipment and leasehold
 improvements, net                   3,054,902     4,093,091
Trademarks and licenses, net         2,110,207     2,770,211
Other assets                         3,346,152     1,951,680
                                  ------------  ------------
  Total Assets                    $142,174,025  $131,147,940
                                  ============  ============

Borrowings, current portion       $    787,186  $    990,953
Other current liabilities           32,418,663    14,048,769
                                  ------------  ------------
  Current Liabilities               33,205,849    15,039,722
Borrowings, less current
 portion                                 3,764       542,633
                                  ------------  ------------
  Total Liabilities                 33,209,613    15,582,355

Stockholders' Equity               108,964,412   115,565,585
                                  ------------  ------------
  Total Liabilities and
   Stockholders' Equity           $142,174,025  $131,147,940
                                  ============  ============

     Parlux Fragrances, Inc.
     (954) 316-9008
     CONTACT:
     Neil J. Katz, Ext. 8116
     Raymond J. Balsys, Ext. 8106
     Web site: http://www.parlux.com