-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Sdh3XxqLsFxmcipunLGBvnWiaJyf9Q4HwQhBQvlUoTlmfZt+y7mXhXocgxtYUbo6 aiVDXf8fsTrURsaWZpVOyQ== 0000950144-98-007502.txt : 19980617 0000950144-98-007502.hdr.sgml : 19980617 ACCESSION NUMBER: 0000950144-98-007502 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980502 FILED AS OF DATE: 19980616 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PERFUMANIA INC CENTRAL INDEX KEY: 0000880460 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-DRUG STORES AND PROPRIETARY STORES [5912] IRS NUMBER: 650026340 STATE OF INCORPORATION: FL FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-19714 FILM NUMBER: 98649207 BUSINESS ADDRESS: STREET 1: 11701 N W 101 RD CITY: MIAMI STATE: FL ZIP: 33178 BUSINESS PHONE: 3058891600 MAIL ADDRESS: STREET 1: 11701 N W 101 RD CITY: MIAMI STATE: FL ZIP: 33178 10-Q 1 PERFUMANIA, INC. 10-Q 5-2-98 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 MAY 2, 1998 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 MAY 2, 1998 - 7,930,291 2 TABLE OF CONTENTS PERFUMANIA, INC. PART I FINANCIAL INFORMATION ITEM 1 FINANCIAL STATEMENTS Consolidated Balance Sheets...................................... 3 Consolidated Statements of Operations............................ 4 Consolidated Statements of Cash Flows............................ 5 Notes to Condensed Consolidated Financial Statements............. 6 ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS............................................... 9 2 3 PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS PERFUMANIA, INC. CONSOLIDATED BALANCE SHEETS
MAY 2, JANUARY 31, ASSETS: 1998 1998 -------------------- ------------------ Current assets: Cash and cash equivalents $1,283,615 $1,554,117 Trade receivables, net of allowance for doubtful accounts of $734,954 and $704,954 4,121,667 5,186,473 Advances to suppliers 8,970,304 7,611,036 Inventories, net of reserve of $2,463,000 and $2,750,000 70,173,025 73,137,842 Prepaid expenses and other current assets 1,876,783 2,086,118 Tax refund receivable 814,766 814,766 Deferred tax asset, net 1,219,856 1,219,856 Due from related parties 877,855 772,855 -------------------- ------------------ Total current assets 89,337,871 92,383,063 Property and equipment, net 20,550,868 18,307,240 Leased equipment under capital leases, net 1,919,259 2,266,674 Other assets, net 1,842,095 1,764,906 -------------------- ------------------ $ 113,650,093 $114,721,883 ==================== ================== LIABILITIES AND STOCKHOLDERS' EQUITY: Current liabilities: Bank line of credit and current portion of notes payable $36,385,159 $ 34,139,766 Accounts payable - non affiliates 12,409,119 13,308,914 Accounts payable - affiliates 18,980,005 16,958,163 Accrued expenses and other liabilities 6,389,155 6,848,923 Income taxes payable 387,542 505,098 Current portion of obligations under capital leases 897,600 1,030,340 Due to related parties 334,969 304,483 -------------------- ------------------ Total current liabilities 75,783,549 73,095,687 Long-term portion of notes payable 4,484,599 4,709,434 Long-term portion of obligations under capital leases 734,777 933,615 -------------------- ------------------ Total liabilities 81,002,925 78,738,736 -------------------- ------------------ Commitments and contingencies -- -- -------------------- ------------------ Stockholders' equity Preferred stock, $.01 par value, 1,000,000 shares authorized, none issued -- -- Common stock, $.01 par value, 25,000,000 shares authorized, 7,930,291 and 7,845,291 shares issued and outstanding 79,303 78,453 Capital in excess of par value 52,385,511 52,386,361 Treasury stock, at cost (5,085,435) (4,521,068) Accumulated deficit (14,732,211) (11,960,599) -------------------- ------------------ Total stockholders' equity 32,647,168 35,983,147 -------------------- ------------------ $113,650,093 $114,721,883 ==================== ==================
See accompanying notes to consolidated financial statements. 3 4 PERFUMANIA, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
Thirteen Thirteen Weeks Ended Weeks Ended May 2, 1998 May 3, 1997 ----------- ------------ Net sales: Unaffiliated customers $ 38,467,975 $ 28,946,685 Affiliates -- 1,042,039 ------------ ------------ 38,467,975 29,988,724 ------------ ------------ Cost of goods sold: Unaffiliated customers 23,662,458 16,040,684 Affiliates -- 1,042,039 ------------ ------------ 23,662,458 17,082,723 ------------ ------------ Gross profit 14,805,517 12,906,001 ------------ ------------ Operating expenses: Selling, general and administrative 15,337,548 14,208,824 Depreciation and amortization 1,082,258 1,129,449 ------------ ------------ Total operating expenses 16,419,806 15,338,273 ------------ ------------ Loss from operations before other expense (1,614,289) (2,432,272) Other expense (1,157,323) (897,988) ------------ ------------ Loss before income taxes (2,771,612) (3,330,260) Benefit for income taxes -- (1,332,104) ------------ ------------ Net loss before cumulative effect of change in accounting principle (2,771,612) (1,998,156) Cumulative effect of change in accounting principle, net of income tax benefit of $380,958 -- (631,418) ------------ ------------ Net loss $ (2,771,612) $ (2,629,574) ============ ============ Basic loss per common share: Net loss before cumulative effect of change in accounting principle $ (0.42) $ (0.28) Cumulative effect of change in accounting principle, net of tax benefit -- $ (0.09) ------------ ------------ Net loss $ (0.42) $ (0.37) ============ ============ Diluted loss per common share: Net loss before cumulative effect of change in accounting principle $ (0.42) $ (0.28) Cumulative effect of change in accounting principle, net of tax benefit -- $ (0.09) ------------ ------------ Net loss $ (0.42) $ (0.37) ============ ============ Weighted average number of shares outstanding: Basic 6,560,354 7,120,571 Diluted 6,574,597 7,195,622
See accompanying notes to consolidated financial statements. 4 5 PERFUMANIA, INC CONSOLIDATED STATEMENTS OF CASH FLOWS
Thirteen Thirteen Weeks Ended Weeks Ended May 2, 1998 May 3, 1997 ------------ ----------- Cash flows from operating activities: Net loss $(2,771,612) $(2,629,574) Adjustments to reconcile net loss to net cash provided by (used in) operating activities: Provision for doubtful accounts 30,000 35,000 Deferred tax benefit -- (1,332,104) Depreciation and amortization 1,082,258 1,129,449 Loss on disposition -- 115,000 Cumulative effect of change in accounting principle, net of tax benefit -- 631,418 Change in assets and liabilities, (Increase) decrease in: Trade receivables 1,034,806 2,965,801 Advances to suppliers (1,359,268) (1,879,492) Inventories 2,964,817 (1,771,424) Other current assets 209,335 410,329 Due from related parties (105,000) -- Other assets (77,189) (79,764) Increase (decrease) in: Accounts payable 1,122,047 981,186 Accrued expenses and other current liabilities (459,768) (890,911) Income taxes payable (117,556) (982,000) ----------- ----------- Total adjustments 4,324,482 (667,512) ----------- ----------- Net cash provided by (used in) operating activities 1,552,870 (3,297,086) ----------- ----------- Cash flows from investing activities: Additions to property and equipment (2,978,471) (1,495,595) ----------- ----------- Net cash used in investing activities (2,978,471) (1,495,595) ----------- ----------- Cash flows from financing activities: Net borrowing and repayments under bank line of credit and notes payable 2,020,558 4,964,657 Net borrowing and repayment to related parties 30,486 (15,517) Principal payments under capital lease obligations (331,578) (250,412) Purchases of treasury stock (564,367) (155,739) ----------- ----------- Net cash provided by financing activities 1,155,099 4,542,989 ----------- ----------- Decrease in cash and cash equivalents (270,502) (249,692) Cash and cash equivalents at beginning of period 1,554,117 1,641,527 ----------- ----------- Cash and cash equivalents at end of period $ 1,283,615 $ 1,391,835 =========== =========== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for: Interest $ 1,307,562 $ 896,244 Income Taxes 117,556 982,000
See accompanying notes to consolidated financial statements. 5 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 January 31, 1998. (2). STOCKHOLDERS' EQUITY
CAPITAL COMMON STOCK IN EXCESS TREASURY STOCK ACCUMULATED -------------------------- OF PAR ------------------------- EARNINGS SHARES AMOUNT VALUE SHARES AMOUNT (DEFICIT) TOTAL ----------- ----------- ----------- --------- ------------ ------------- ------------ Balance at January 31, 1998 7,845,291 $ 78,453 $52,386,361 1,218,360 ($4,521,068) ($11,960,599) $35,983,147 Purchases of treasury stock -- -- -- 192,491 (564,367) -- (564,367) Issuance of common stock 85,000 850 (850) -- -- -- -- Net loss for the thirteen weeks ended May 2, 1998 -- -- -- -- -- (2,771,612) (2,771,612) ----------- ----------- ----------- --------- ------------ ------------- ------------ Balance at May 2, 1998 7,930,291 $ 79,303 $52,385,511 1,410,851 ($5,085,435) ($14,732,211) $32,647,168 ----------- ----------- ----------- --------- ------------ ------------- ------------
(3). BASIC AND DILUTED LOSS PER COMMON SHARE Basic loss per common share has been computed by dividing net loss by the weighted average number of common shares outstanding during the period. Diluted loss per share includes the dilutive effect of those stock options where the option exercise prices exceed the average market price of the common shares for the respective quarters. 6 7 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.
Thirteen Weeks Thirteen Weeks Ended Ended May 2, 1998 May 3, 1997 -------------- -------------- Sales Wholesale $13,467,930 $ 6,541,323 Retail 25,000,045 23,447,401 ----------- ----------- Total net sales $38,467,975 $29,988,724 ----------- ----------- Cost of goods sold Wholesale $10,280,190 $ 5,084,973 Retail 13,382,268 11,997,750 ----------- ----------- Total cost of goods sold $23,662,458 $17,082,723 ----------- ----------- Gross profit Wholesale $ 3,187,740 $ 1,456,350 Retail 11,617,777 11,449,651 ----------- ----------- Total gross profit $14,805,517 $12,906,001 ----------- ----------- Number of stores 284 270 May 2, 1998 January 31, 1998 -------------- ---------------- Inventory - --------- Wholesale $16,500,647 $20,368,792 Retail 53,672,378 52,769,050 ----------- ----------- $70,173,025 $73,137,842 ----------- -----------
An unaffiliated customer of the wholesale segment accounted for approximately 23% and 6% of the consolidated net sales for the thirteen weeks ended May 2, 1998 and May 3, 1997, respectively, and 32% and 18% of the consolidated net trade accounts receivable balance at May 2, 1998 and January 31, 1998, respectively. 5). RECENT ACCOUNTING PRONOUNCEMENT In April 1998, the American Institute of Certified Public Accountants issued Statement of Position 98-5 ("SOP 98-5"), "Reporting on the Costs of Start-Up Activities", which requires the Company to expense preopening expenses as incurred. Previously, the Company had capitalized and amortized these expenses over 18 months. SOP 98-5 is effective for financial statements for fiscal years beginning after December 15, 1998, does not require restatement of prior periods and is applied as of the beginning of the fiscal year in which the SOP is first adopted. The Company early adopted SOP 98-5 in fiscal 1997 and reported the initial application as a cumulative effect of a change in accounting principle in the Consolidated Statement of Operations for the year ended January 31, 1998. Accordingly, the Company's net loss and net loss per common share for the thirteen weeks ended May 3, 1997 in the accompanying Consolidated Statements of Operations has been restated to reflect this change. The effect of the change in accounting principle was to reduce the net loss before cumulative effect of change in accounting principle reported for the first quarter of 1997 by approximately $68,000. 7 8 6). OTHER During fiscal years 1997 and 1996, the Company made sales to L. Luria & Son, Inc. ("Luria's") in the amounts of $1,999,823 and $2,473,623, respectively. The Company wrote off in 1997 receivables from Luria's in the approximate amount of $1,200,000. The Company has been characterized as an insider in the liquidating plan of reorganization filed on April 6, 1998 by Luria's in the United States Bankruptcy Court, Southern District of Florida. The committee of unsecured creditors in Luria's bankruptcy proceedings is investigating potential actions to recover substantial funds from alleged insiders of Luria's and their affiliates, which might include actions against the Company to recover amounts paid for merchandise sold to Luria's. Management cannot presently predict the outcome of these matters, although management believes, upon the advice of legal counsel, that the Company would have meritorious defenses and that the ultimate resolution of these matters should not have a materially adverse effect on the Company's financial position or result of operations. 8 9 PART I. FINANCIAL INFORMATION ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS RISK FACTORS THAT MAY AFFECT FUTURE RESULTS - ------------------------------------------- Perfumania does not provide forecasts of future financial performance. Forward-looking statements in this Form 10-Q and other Company reports and press releases are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and, in connection therewith, the Company wishes to caution readers that the following important factors, among others, in some cases have affected and in the future could affect the Company's actual results and could cause such results to differ materially from those expressed in forward-looking statements made by or on behalf of the Company. SEASONALITY. The Company has historically experienced higher 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. The Company's quarterly results may also vary due to the timing of new store openings, net sales contributed by new stores and fluctuations in comparable sales of existing stores. A variety of factors affect the sales levels of new and existing stores, including the retail sales environment and the level of competition, the effect of marketing and promotional programs, acceptance of new product introductions, adverse weather conditions and general economic conditions. LACK OF LONG-TERM AGREEMENTS WITH SUPPLIERS. The Company's success depends to a large degree on its ability to provide an extensive assortment of brand name and designer fragrances. The Company has no long-term purchase contracts or other contractual assurance of continued supply, pricing or access to new products. While the Company believes it has good relationships with its vendors, the inability to obtain merchandise from one or more key vendors on a timely basis, or a material change in the Company's ability to obtain necessary merchandise could have a material adverse effect on its results of operations. DEPENDENCE ON LINE OF CREDIT. As discussed above, the Company experiences significant seasonal fluctuations in its sales and operating results, as is common with many specialty retailers. The Company utilizes its line of credit to fund inventory purchases and to support new retail store openings. Any future limitation on the Company's borrowing ability and access to financing could limit the Company's ability to open new stores and to obtain merchandise on satisfactory terms. The Company's current line of credit contains financial covenants, including a net income covenant. Should the Company not be able to meet its covenants, its borrowing ability and thus, its operations will be seriously affected. DEPENDENCE ON KEY PERSONNEL. Simon Falic, the Company's Chairman of the Board and Chief Executive Officer and Jerome Falic, the Company's Vice President, are primarily responsible for the Company's merchandise purchases, and have developed strong, reliable relationships with suppliers, as well as customers of the Wholesale division in the United States, Europe, Asia and South America. The loss of service of either of these, or any of the Company's other current executive officers could have a material adverse effect on the Company. ABILITY TO MANAGE GROWTH. While the Company has grown significantly over the past several years, there is no assurance that the Company will sustain the growth in the number of retail stores and revenues that it has achieved historically. The Company's growth is dependent, in large part, upon the Company's ability to open and operate new retail stores on a profitable basis, which in turn is subject to, among other things, the Company's ability to secure suitable store sites on satisfactory terms, the Company's ability to hire, train and retain qualified management and other personnel, the availability of adequate capital resources and the successful integration of new stores into existing operations. There can be no assurance 9 10 that the Company's new stores will achieve sales and profitability comparable to existing stores, or that the opening of new locations will not cannibalize sales at existing locations. LITIGATION. As is often the case in the fragrance and cosmetics business, some of the merchandise purchased by suppliers such as the Company may have been manufactured by entities who are not the owners of the trademarks or copyrights for the merchandise. If the Company were called upon or challenged by the owner of a particular trademark or copyright to demonstrate that the specific merchandise was produced and sold with the proper authority and the Company were unable to do so, the Company could, among other things, be restricted from reselling the particular merchandise or be subjected to other liabilities, which could have an adverse effect on the Company's business and results of operations. OTHER. The Company has been characterized as an insider in the liquidating plan of reorganization filed on April 6, 1998 by L. Luria & Son, Inc. ("Luria's") in the United States Bankruptcy Court, Southern District of Florida. The committee of unsecured creditors in Luria's bankruptcy proceedings is investigating potential actions to recover substantial funds from alleged insiders of Luria's and their affiliates, which might include actions against the Company to recover amounts paid for merchandise sold to Luria's. Management cannot presently predict the outcome of these matters, although management believes, upon the advice of counsel, that the Company would have meritorious defenses and that the ultimate resolution of these matters should not have a materially adverse effect on the Company's financial position or result of operations. LIQUIDITY AND CAPITAL RESOURCES - ------------------------------- At May 2, 1998 working capital was $13.6 million compared to $19.3 million at January 31, 1998. The decrease was primarily due to the current period loss as well as a reduction in the Company's trade receivables and inventories. Net cash provided by operating activities during the thirteen weeks ended May 2, 1998 was approximately $1.6 million, principally as a result of the net change in the Company's trade receivables, advances to suppliers, inventories and accounts payable. At May 2, 1998, approximately $0.8 million of the Company's trade receivables were considered past due compared to $1.1 million at January 31, 1998. Of the $4.1 million in trade receivables, $1.3 million was due from one customer which also accounted for 66% of the Company's wholesale sales during the thirteen weeks ended May 2, 1998. 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. Net cash used in investing activities during the current period was approximately $3.0 million. This represents purchases of furniture, fixtures and equipment for store openings and renovations of existing stores during the first and second quarters. Net cash provided by financing activities during the current period was approximately $1.2 million, which was primarily the result of an increase in the Company's use of its line of credit. In May 1998, the Company's $35 million line of credit was extended from April 1999 to April 2001, and certain covenants were revised. During the thirteen weeks ended May 2, 1998, the Company opened nine stores and closed ten underperforming stores. At May 2, 1998, the Company operated 284 stores. 10 11 RESULTS OF OPERATIONS Comparison of the Thirteen Weeks Ended May 2, 1998 with the Thirteen Weeks Ended May 3, 1997. Net sales increased 28.3% from $30.0 million in the first thirteen weeks of 1997 to $38.5 million in the first thirteen weeks of 1998. The increase in net sales was the result of a 105.9% increase in wholesale sales (from $6.5 million to $13.5 million), and a 6.6% increase in retail sales (from $23.4 million to $25.0 million). The increase in wholesale sales was primarily due to an increase in sales to the wholesale division's largest customer and continued efforts to reduce inventory levels. The increase in retail sales was principally due to the increase in the number of stores operated during the first thirteen weeks of 1998 compared to the first thirteen weeks of 1997. Comparable store sales during the current period were flat when compared to last year. Gross profit increased 14.7% from $12.9 million in the first thirteen weeks of 1997 (43.0% of total net sales) to $14.8 million in the first thirteen weeks of 1997 (38.5% of net sales) primarily due to an increase in gross profit for the wholesale division. The decrease in gross profit as a percentage of sales is due primarily to the increase in wholesale sales as a percentage of total net sales during the current quarter. The wholesale division realizes significantly lower gross margins when compared to the retail division. Gross profit for the wholesale division increased from $1.5 million in the first thirteen weeks of 1997 to $3.2 million in the first thirteen weeks of 1998 as a result of higher wholesale sales. As a percentage of net sales, gross profit for the wholesale division increased from 22.3% in the first thirteen weeks of 1997 to 23.7% in the first thirteen weeks of 1998. Gross profit for the retail division increased to $11.6 million in the first thirteen weeks of 1998 from $11.4 million in the first thirteen weeks of 1997 as a result of higher retail sales. As a percentage of net sales, gross profit for the retail division decreased from 48.8% in the first thirteen weeks of 1997 to 46.5% in the thirteen weeks of 1998 primarily as a result of more promotional sales of merchandise at lower margins. Operating expenses, which include selling, general and administrative expenses as well as depreciation, increased 7.1% from $15.3 million in the first thirteen weeks of 1997 to $16.4 million in the first thirteen weeks of 1998. The increase was primarily due to costs associated with the operation of 16 additional stores during the current period. As a percentage of net sales, operating expenses decreased from 51.2% in the first quarter of 1997 to 47.6% in the first thirteen weeks of 1998, due primarily to the increase in wholesale sales. As a result of the foregoing, the Company had a net loss of $2,771,612, or $0.42 per diluted share, in the first thirteen weeks of 1998 compared to a net loss of $2,629,574 or $0.37 per share, in the first thirteen weeks of 1997. Excluding the cumulative effect of the change in accounting principle of $631,418 and a tax benefit of $1,332,104 in 1997, the loss for the first thirteen weeks of 1997 was $3,330,260 or $0.46 per diluted share. 11 12 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: June 15, 1998 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 EX-27 2 FINANCIAL DATA SCHEDULE
5 3-MOS JAN-30-1999 FEB-01-1998 MAY-02-1998 1,283,615 0 4,121,667 0 70,173,025 89,337,871 20,550,868 0 113,650,093 75,783,549 0 0 0 79,303 32,567,865 113,650,093 38,467,975 38,467,975 23,662,458 23,662,458 17,577,129 0 0 (2,771,612) 0 (2,771,612) 0 0 0 (2,771,612) (0.42) (0.42)
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