<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED NOVEMBER 1, 1997
COMMISSION FILE NUMBER 0-19714
PERFUMANIA, INC.
STATE OF FLORIDA I.R.S. NO. 65-0026340
11701 N.W. 101ST ROAD
MIAMI, FLORIDA 33178
TELEPHONE NUMBER: (305) 889-1600
INDICATE BY CHECK MARK WHETHER THE REGISTRANT, (1) HAS FILED ALL REPORTS
REQUIRED TO BE FILED BY SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 DURING THE PRECEDING TWELVE (12) MONTHS (OR FOR SUCH SHORTER PERIOD THAT
THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS) AND (2) HAS BEEN SUBJECT TO
SUCH FILING REQUIREMENTS FOR THE PAST NINETY (90) DAYS.
YES X NO
---- ----
COMMON STOCK $.01 PAR VALUE
OUTSTANDING SHARES AT NOVEMBER 1, 1997 - 7,807,791
<PAGE> 2
TABLE OF CONTENTS
PERFUMANIA, INC.
PART I
FINANCIAL INFORMATION
<TABLE>
<S> <C>
ITEM 1 FINANCIAL STATEMENTS
Consolidated Balance Sheets............................................. 2
Consolidated Statements of Operations................................... 3
Consolidated Statements of Cash Flows................................... 4
Notes to Condensed Consolidated Financial Statements.................... 5
ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
CONSOLIDATED FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.................................................. 8
</TABLE>
PART II
OTHER INFORMATION
<TABLE>
<S> <C>
ITEM 4 SUBMISSION OF MATTERS TO A VOTE
OF SECURITY HOLDERS.................................................... 11
</TABLE>
1
<PAGE> 3
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PERFUMANIA, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
NOVEMBER 1, 1997 FEBRUARY 1, 1997
---------------- ----------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1,612,171 $ 1,641,527
Trade receivables, less
allowance for doubtful accounts
of $818,386 and $248,386 11,247,210 12,928,816
Advances to suppliers 7,536,075 5,023,718
Inventories, net of reserve of $940,000 87,545,147 85,110,423
Prepaid expenses and other current assets 2,258,931 1,899,320
Net deferred tax asset 3,176,133 873,472
Due from related parties 85,613 85,613
------------- -------------
Total current assets 113,461,280 107,562,889
Property and equipment, net 19,360,159 17,709,758
Leased equipment under capital leases, net 1,806,199 2,013,857
Other assets 2,427,636 2,203,442
Due from related parties 457,243 417,763
------------- -------------
$ 137,512,517 $ 129,907,709
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Bank line of credit and current portion of
notes payable $ 36,284,039 $ 31,372,171
Accounts payable 43,023,456 36,128,515
Accrued expenses and other liabilities 4,107,346 3,940,440
Income taxes payable 308,509 1,321,203
Current portion of obligations under capital leases 873,425 873,425
Due to related parties 786,483 770,000
------------- -------------
Total current liabilities 85,383,258 74,405,754
Long term portion of loans payable 5,480,755 4,519,859
Long-term portion of obligations under capital leases 701,157 1,187,516
------------- -------------
Total liabilities 91,565,170 80,113,129
------------- -------------
Excess of fair value of assets acquired over cost 616,169 470,000
------------- -------------
Stockholders' equity:
Preferred stock, $.01 par value, 1,000,000 shares
authorized, none issued -- --
Common stock, $.01 par value, 25,000,000 shares
authorized, 7,807,791 shares issued
and outstanding 78,078 78,078
Capital in excess of par 51,900,229 51,900,229
Treasury stock (3,233,766) (2,655,110)
Retained earnings (accumulated deficit) (3,413,363) 1,383
------------- -------------
Total stockholders' equity 45,331,178 49,324,580
------------- -------------
$ 137,512,517 $ 129,907,709
============= =============
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE> 4
PERFUMANIA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THIRTEEN THIRTEEN THIRTY-NINE THIRTY-NINE
WEEKS ENDED WEEKS ENDED WEEKS ENDED WEEKS ENDED
NOVEMBER 1, 1997 NOVEMBER 2, 1996 NOVEMBER 1, 1997 NOVEMBER 2, 1996
---------------- ---------------- ---------------- ---------------
<S> <C> <C> <C> <C>
Net sales:
Unaffiliated customers $ 38,753,773 $ 34,576,849 $ 103,796,306 $ 86,668,286
Affiliates 21,257 -- 2,251,978 --
------------- ------------- ------------- -------------
38,775,030 34,576,849 106,048,284 86,668,286
------------- ------------- ------------- -------------
Cost of goods sold:
Unaffiliated customers 22,846,084 19,536,336 59,782,336 48,894,635
Affiliates 15,921 -- 1,818,644 --
------------- ------------- ------------- -------------
22,862,005 19,536,336 61,600,980 48,894,635
------------- ------------- ------------- -------------
Gross profit 15,913,025 15,040,513 44,447,304 37,773,651
------------- ------------- ------------- -------------
Operating Expenses:
Selling, general and
administrative 15,217,720 11,899,577 43,466,117 33,088,856
Depreciation and amortization 1,418,770 917,141 4,078,775 2,627,568
------------- ------------- ------------- -------------
Total operating expenses 16,636,490 12,816,718 47,544,892 35,716,424
------------- ------------- ------------- -------------
Income (loss) from operations
before other expense (723,465) 2,223,795 (3,097,588) 2,057,227
Other expense (740,067) (774,772) (2,593,656) (2,228,782)
------------- ------------- ------------- -------------
Income (loss) before income taxes (1,463,532) 1,449,023 (5,691,244) (171,555)
(Provision) benefit for income taxes 585,413 (564,017) 2,276,498 66,906
------------- ------------- ------------- -------------
Net income (loss) $ (878,119) $ 885,006 $ (3,414,746) $ (104,649)
============= ============= ============= =============
Earnings (loss) per common share $ (0.12) $ 0.10 $ (0.48) $ (0.01)
============= ============= ============= =============
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE> 5
PERFUMANIA, INC
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
THIRTY-NINE THIRTY-NINE
WEEKS ENDED WEEKS ENDED
NOVEMBER 1, 1997 NOVEMBER 2, 1996
---------------- ----------------
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (3,414,746) $ (104,649)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Capitalized preopening costs (329,339) (623,346)
Provision for doubtful accounts 570,000 340,000
Benefit for income taxes (2,276,498) (66,906)
Depreciation and amortization 4,078,775 2,627,568
Loss on disposition 239,970 39,179
Change in assets and liabilities,
(Increase) decrease in:
Trade receivables 1,111,606 247,342
Advances to suppliers (2,512,357) (3,159,450)
Inventories (2,434,724) (17,736,444)
Other current assets (399,091) (443,370)
Other assets (481,069) (164,492)
Increase (decrease) in:
Accounts payable 6,894,941 14,469,588
Other current liabilities 171,912 861,857
Income taxes payable (1,012,694) --
------------ ------------
Total adjustments 3,621,432 (3,608,474)
------------ ------------
Net cash provided by (used in) operating activities 206,686 (3,713,123)
------------ ------------
Cash flows from investing activities:
Additions to property and equipment (4,701,006) (4,722,114)
------------ ------------
Net cash used in investing activities (4,701,006) (4,722,114)
------------ ------------
Cash flows from financing activities:
Borrowings & repayments under loan payable 5,872,764 9,159,786
Borrowings & repayments from related parties 16,483 107,764
Principal payments under capital lease obligations (845,627) (308,235)
Proceeds from issuance of common stock -- 964,500
Purchases of treasury stock (578,656) (933,824)
------------ ------------
Net cash provided by financing activities 4,464,964 8,989,991
------------ ------------
Increase (decrease) in cash and cash equivalents (29,356) 554,754
Cash and cash equivalents at beginning of period 1,641,527 331,028
------------ ------------
Cash and cash equivalents at end of period $ 1,612,171 $ 885,782
============ ============
Supplemental disclosure of cash flow information:
Cash paid for:
Interest $ 3,421,770 $ 2,458,821
Income taxes $ 1,012,694 $ 106,138
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 6
PERFUMANIA, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(1). SIGNIFICANT ACCOUNTING POLICIES
The condensed consolidated financial statements include the accounts of
Perfumania and subsidiaries (the Company). All material intercompany balances
and transactions have been eliminated in consolidation.
The unaudited condensed consolidated financial statements have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and note disclosures normally included in annual financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to those rules and regulations, although
the Company believes that the disclosures made are adequate to make the
information presented not misleading. The financial information presented
herein, which is not necessarily indicative of results to be expected for the
current fiscal year, reflects all adjustments which, in the opinion of the
Company, are necessary for a fair statement of the results for the periods
indicated. It is suggested that these condensed consolidated financial
statements be read in conjunction with the financial statements and the notes
thereto included in the Company's Annual Report on Form 10-K for the fiscal year
ended February 1, 1997.
(2). STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
RETAINED
COMMON STOCK CAPITAL IN TREASURY STOCK EARNINGS
---------------------------- EXCESS ---------------------------- (ACCUMULATED
SHARES AMOUNT OF PAR SHARES AMOUNT DEFICIT) TOTAL
------------ ------------ ------------ ------------ ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C>
Balance at
February 1, 1997 7,807,791 $ 78,078 $ 51,900,229 667,000 $ (2,655,110) $ 1,383 $ 49,324,580
Purchases of
treasury stock -- -- -- 187,600 (578,656) -- (578,656)
Net loss for the
thirty-nine weeks
ended Nov. 1, 1997 -- -- -- -- -- (3,414,746) (3,414,746)
------------ ------------ ------------ ------------ ------------ ------------ ------------
Balance at
November 1, 1997 7,807,791 $ 78,078 $ 51,900,229 854,600 $ (3,233,766) $ (3,413,363) $ 45,331,178
------------ ------------ ------------ ------------ ------------ ------------ ------------
</TABLE>
5
<PAGE> 7
(3). EARNINGS (LOSS) PER COMMON SHARE
Earnings (loss) per common share are computed by dividing net income (loss) by
the weighted average number of common shares outstanding.
If the Company were required to calculate earnings per share under Statement of
Financial Accounting Standards No. 128, which is effective for periods after
December 15, 1997, basic and diluted earnings per share for the first three
quarters of 1997 and 1996, respectively, would not have been materially
different than the earnings per share reported in the accompanying consolidated
statements of income.
The weighted average numbers of common shares for the thirteen and thirty-nine
weeks ended November 1, 1997 was 7,121,259 and 7,159,261, respectively. The
weighted average number of common shares for the thirteen and thirty-nine weeks
ended November 2, 1996 was 8,447,436 and 7,858,334, respectively.
(4). SEGMENT INFORMATION
The Company operates in two industry segments, specialty retail sale and
wholesale distribution of fragrances and related products. Financial information
for these segments is summarized in the following table.
<TABLE>
<CAPTION>
THIRTEEN THIRTEEN THIRTY-NINE THIRTY-NINE
WEEKS ENDED WEEKS ENDED WEEKS ENDED WEEKS ENDED
NOV. 1, 1997 NOV. 2, 1996 NOV. 1, 1997 NOV. 2, 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Sales
Wholesale $ 8,590,382 $ 8,565,178 $ 23,464,369 $ 19,709,774
Retail 30,184,648 26,011,671 82,583,915 66,958,512
------------ ------------ ------------ ------------
Total net sales $ 38,775,030 $ 34,576,849 $106,048,284 $ 86,668,286
------------ ------------ ------------ ------------
Cost of goods sold
Wholesale $ 6,519,325 $ 5,983,724 $ 17,772,556 $ 14,222,691
Retail 16,342,680 13,552,612 43,828,424 34,671,944
------------ ------------ ------------ ------------
Total cost of goods sold $ 22,862,005 $ 19,536,336 $ 61,600,980 $ 48,894,635
------------ ------------ ------------ ------------
Gross profit
Wholesale $ 2,071,057 $ 2,581,454 $ 5,691,813 $ 5,487,083
Retail 13,841,968 12,459,059 38,755,491 32,286,568
------------ ------------ ------------ ------------
Total gross profit $ 15,913,025 $ 15,040,513 $ 44,447,304 $ 37,773,651
------------ ------------ ------------ ------------
Number of stores 283 207
November 1, February 1,
1997 1997
----------- -----------
INVENTORY
Wholesale $28,713,893 $32,051,346
Retail 58,831,254 53,059,077
----------- -----------
$87,545,147 $85,110,423
----------- -----------
</TABLE>
An unaffiliated customer of the wholesale segment accounted for approximately 7%
and 10% of the consolidated net sales for the thirty-nine weeks ended November
1, 1997 and November 2, 1996, respectively, and 47% and 57% of the consolidated
net trade accounts receivable balance at November 1, 1997 and November 2, 1996,
respectively.
6
<PAGE> 8
(5). OTHER
In August 1997, one of the Company's wholesale customers who is affiliated by
common ownership filed for relief under Chapter 11 of the United States
Bankruptcy Code. The Company is an unsecured creditor of the customer and as of
November 1, 1997, had outstanding receivables net of accounts payable from the
customer of approximately $1.4 million. Depending on the resolution of the
customer's bankruptcy case, the Company may not be paid the full amount due from
the customer. Due to the above, the Company recorded a bad debt reserve of
$500,000 during the second quarter of 1997, increasing the allowance for
doubtful accounts to approximately $0.8 million as of November 1, 1997.
(6). SUBSEQUENT EVENT
Subsequent to November 1, 1997, the Company repurchased an additional
191,000 shares of its common stock for approximately $690,000. This repurchase
was previously authorized by the Company's Board of Directors.
7
<PAGE> 9
PART I. FINANCIAL INFORMATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
SEASONALITY
The Company's operations have historically been seasonal, with generally higher
retail sales in the third and fourth fiscal quarters than in the first and
second fiscal quarters. Significantly higher fourth fiscal quarter retail sales
result from increased purchases of fragrances as gift items during the Christmas
holiday season. Wholesale sales also vary by fiscal quarter as a result of the
selection of merchandise available for sale as well as the need for the Company
to stock its retail stores for the Christmas holiday season. Therefore, the
results of any interim period are not necessarily indicative of the results that
might be expected during a full fiscal year.
LIQUIDITY AND CAPITAL RESOURCES
At November 1, 1997 working capital was $28.1 million compared to $33.2 million
at February 1, 1997.
Net cash provided by operating activities during the thirty-nine weeks ended
November 1, 1997 was approximately $0.2 million, principally as a result of the
net change in the Company's trade receivables, advances to suppliers, inventory,
and accounts payable. At November 1, 1997, approximately $2.8 million of the
Company's trade receivables were considered past due compared to $0.2 million at
February 1, 1997. Of the $9.8 million in trade receivables due from unaffiliated
customers at November 1, 1997, $5.3 million was due from one customer which also
accounted for 35.1% of the Company's wholesale sales during the thirteen weeks
ended November 1, 1997. The Company's sales to this customer are made on an open
account terms and since late 1991 the Company has extended credit terms to this
customer of up to one year. The Company has not experienced any write-offs of
accounts receivable from this customer due to collectibility. Subsequent to
November 1, 1997, the Company has collected $4.9 million of the $5.3 million
due from the customer.
Net cash used in investing activities during the current period was $4.7
million. This represents purchases of furniture, fixtures and equipment for new
store openings and the renovation of existing stores during fiscal 1997.
Net cash provided by financing activities during the thirty-nine weeks
ended November 1, 1997 was approximately $4.5 million, which was primarily the
result of an increase in the Company's use of its line of credit. The $35.0
million line of credit is used primarily for working capital to support seasonal
inventory requirements and new store additions. The line of credit expires on
April 30, 1999.
During the thirty-nine weeks ended November 1, 1997, the Company closed nine
stores and opened thirty stores. At November 1, 1997, the Company operated 283
stores.
8
<PAGE> 10
RESULTS OF OPERATIONS
COMPARISON OF THE THIRTEEN WEEKS ENDED NOVEMBER 1, 1997 WITH THE THIRTEEN WEEKS
ENDED NOVEMBER 2, 1996.
Net sales increased $4.2 million from $34.6 million in the thirteen weeks ended
November 2, 1996 to $38.8 million in the thirteen weeks ended November 1, 1997.
The increase in net sales was the result of a $4.2 million increase in retail
sales (from $26.0 million to $30.2 million); wholesale sales were $8.6 million,
unchanged from the prior year. The increase in retail sales was principally due
to the increase in the number of stores operated during the thirteen weeks ended
November 1, 1997. Comparable store sales during the current period decreased
4.3% when compared to last year.
Gross profit increased 5.8% from $15.0 million in the thirteen weeks ended
November 2, 1996 (41.0% of net sales) to $15.9 million in the thirteen weeks
ended November 1, 1997 (43.5% of total net sales) due primarily to the increase
in retail sales.
Gross profit for the wholesale division decreased from $2.6 million in the
thirteen weeks ended November 2, 1996 to $2.1 million in the thirteen weeks
ended November 1, 1997 as a result of lower margin wholesale sales. As a
percentage of net sales, gross profit for the wholesale division decreased from
30.1% in the thirteen weeks ended November 2, 1996 to 24.1% in the thirteen
weeks ended November 1, 1997, as a result of lower margin sales.
Gross profit for the retail division increased 11.1% from $12.5 million in the
thirteen weeks ended November 2, 1996 to $13.8 million in the thirteen weeks
ended November 1, 1997 as a result of higher retail sales. As a percentage of
net sales, gross profit for the retail division decreased from 47.9% in the
thirteen weeks ended November 2, 1996 to 45.9% in the thirteen weeks ended
November 1, 1997 due primarily to increased promotional sales of merchandise at
lower margins.
Operating expenses, which include selling, general and administrative expenses
as well as depreciation, increased 29.8% from $12.8 million in the thirteen
weeks ended November 2, 1996 to $16.6 million in the thirteen weeks ended
November 1, 1997. The increase was primarily due to costs associated with the
operation of 76 additional stores.
The Company had a pre-tax net loss of $1,463,532, or ($0.21) per share, in the
thirteen weeks ended November 1, 1997 compared to a pre-tax net income of
$1,449,023, or $0.17 per share, in the thirteen weeks ended November 2, 1996. On
an after-tax basis, net loss was $878,119, or ($0.12) per share, in the thirteen
weeks ended November 1, 1997 compared to net income of $885,006, or $0.10 per
share in the thirteen weeks ended November 2, 1996. The weighted average common
shares outstanding was 7,121,259 for the thirteen weeks ended November 1, 1997
and 8,447,436 for the thirteen weeks ended November 2, 1996.
9
<PAGE> 11
COMPARISON OF THE THIRTY-NINE WEEKS ENDED NOVEMBER 1, 1997 WITH THE THIRTY-NINE
WEEKS ENDED NOVEMBER 2, 1996.
Net sales increased 22.4% from $86.7 million in the thirty-nine weeks ended
November 2, 1996 to $106.0 million in the thirty-nine weeks ended November 1,
1997. The increase in net sales was due to a 23.3% increase in retail sales
(from $67.0 million to $82.6 million), and a 19.0% increase in wholesale sales
(from $19.7 million to $23.5 million).
The increase in retail sales was principally due to the increase in the number
of stores operated during the thirty-nine weeks ended November 1, 1997 compared
to the thirty-nine weeks ended November 2, 1996. Comparable store sales during
the thirty-nine weeks ended November 1, 1997 increased 0.2% when compared to
last year.
Gross profit increased 17.7% from $37.8 million in the thirty-nine weeks ended
November 2, 1996 (43.6% of net sales) to $44.5 million in the thirty-nine weeks
ended November 1, 1997 (41.9% of net sales) primarily as a result of the
increase in net sales.
Gross profit for the wholesale division increased 3.7% from $5.5 million in the
thirty-nine weeks ended November 2, 1996 to $5.7 million in the thirty-nine
weeks ended November 1, 1997. As a percentage of net sales, gross profit for the
wholesale division decreased from 27.8% in the thirty-nine weeks ended November
2, 1996 to 24.3% in the thirty-nine weeks ended November 1, 1997, primarily due
to lower margin sales.
Gross profit for the retail division increased 20.0% from $32.3 million in the
thirty-nine weeks ended November 2, 1996 to $38.8 million in the thirty-nine
weeks ended November 1, 1997. The retail division's gross margin decreased from
48.2% in the thirty-nine weeks ended November 2, 1996 to 46.9% in the
thirty-nine weeks ended November 1, 1997 due primarily to increased promotional
sales of merchandise at lower margins.
Operating expenses increased $11.8 million in the thirty-nine weeks ended
November 1, 1997 compared to the thirty-nine weeks ended November 2, 1996. The
increase was primarily due to costs associated with the operation of 75
additional stores.
During the thirty-nine weeks ended November 1, 1997 the Company had a pre-tax
net loss of $5,691,244 or ($0.79) per share (based on 7,159,261 weighted average
common shares outstanding), compared to a pre-tax net loss of $171,555 or
($0.02) per share, (based on 7,858,334 weighted average common shares
outstanding) during the thirty-nine weeks ended November 2, 1996. On an
after-tax basis, the Company had a net loss of $3,414,746 or ($0.48) per share
(based on 7,159,261 weighted average common shares outstanding), compared to a
net loss of $104,649 or ($0.01) per share, (based on 7,858,334 weighted average
common shares outstanding.
10
<PAGE> 12
PART II. OTHER INFORMATION
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
On September 30, 1997 the Company held its annual meeting of shareholders.
At the annual meeting, the shareholders elected Simon Falic, Jerome Falic, Ron
A. Friedman, Marc Finer, Robert Pliskin, Daniel J. Manella and Carole Ann Taylor
to the Board of Directors and approved an increase from 1,900,000 to 2,500,000,
in the number of shares of common stock reserved for issuance pursuant to the
Company's 1991 Stock Option Plan.
The number of votes for and against, abstentions and brokers non-votes with
respect to each director's election and the increase in the number of shares
reserved for issuance under the Company's 1991 Stock Option Plan were as
follows:
<TABLE>
<CAPTION>
TOTAL SHARES SHARES
SHARES VOTED VOTED ABSTAIN/ NON-
VOTED FOR AGAINST WITHHELD VOTES
--------- --------- ------- -------- -----
<S> <C> <C> <C> <C> <C>
Simon Falic 5,410,104 5,319,894 -- 90,210 --
Jerome Falic 5,410,104 5,317,894 -- 92,210 --
Marc Finer 5,410,104 5,319,894 -- 90,210 --
Ron A. Friedman 5,410,104 5,319,894 -- 90,210 --
Robert Pliskin 5,410,104 5,321,394 -- 88,710 --
Daniel J. Manella 5,408,604 5,319,894 -- 88,710 --
Carole Ann Taylor 5,410,104 5,321,394 -- 88,710 --
Increase to 2,500,000 in the
number of shares of common
stock reserved for issuance
under the Company's 1991
Stock Option Plan 2,547,973 2,081,647 457,951 8,375 2,862,131
</TABLE>
11
<PAGE> 13
PERFUMANIA, INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused the report to be signed on its behalf by the
undersigned, thereunto duly authorized.
PERFUMANIA, INC.
--------------------------------------------
(Registrant)
Date: December 12, 1997 By: /s/ SIMON FALIC
--------------------------------------------
Simon Falic
Chairman of the Board and Chief Executive
Officer (Principal Executive Officer)
By: /s/ RON A. FRIEDMAN
--------------------------------------------
Ron A. Friedman
President, Chief Financial Officer,
Treasurer and Secretary
(Principal Financial and
Accounting Officer)
12
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-START> AUG-03-1997
<PERIOD-END> NOV-01-1997
<CASH> 1,612,171
<SECURITIES> 0
<RECEIVABLES> 11,247,210
<ALLOWANCES> 0
<INVENTORY> 87,545,147
<CURRENT-ASSETS> 113,461,280
<PP&E> 19,360,159
<DEPRECIATION> 0
<TOTAL-ASSETS> 137,512,517
<CURRENT-LIABILITIES> 85,383,258
<BONDS> 0
0
0
<COMMON> 78,078
<OTHER-SE> 45,253,100
<TOTAL-LIABILITY-AND-EQUITY> 137,512,517
<SALES> 106,048,284
<TOTAL-REVENUES> 106,048,284
<CGS> 61,600,980
<TOTAL-COSTS> 61,600,980
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (5,691,244)
<INCOME-TAX> (2,276,498)
<INCOME-CONTINUING> (3,414,746)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,414,746)
<EPS-PRIMARY> (0.48)
<EPS-DILUTED> (0.48)
</TABLE>
