UPDATE 1-Parlux posts Q3 loss on sluggish international sales

* Q3 loss $0.07/shr

* International sales drop 34 pct

* Expects to be profitable in Q4

* Shares sink 23 pct

Feb 9 (Reuters) - Parlux Fragrances Inc (PARL.O) posted a quarterly loss on sluggish international sales and a volatile U.S. dollar, slamming its shares down 23 percent to their lowest in more than five years.

The perfume maker reported a net loss of $4.5 million, or 22 cents a share, for the quarter ended Dec. 31, compared with a profit of $182,681, or 1 cent a share, a year earlier.

One analyst expected a profit of 7 cents a share, before special items, according to Reuters Estimates.

Last month, Parlux, whose fragrance lines include Paris Hilton, Jessica Simpson and Guess?, said third-quarter revenue rose 6 percent to $47.3 million.

Operating profit was hurt by advertising expenses and a weak economy, Chief Executive Neil Katz said in a statement.

Katz said the company continues to review and reduce costs in all aspects of its operations and staffing, and expects to realize the benefits beginning in the fourth quarter.

"We expect the final quarter of this fiscal year to be profitable, assuming no further major deterioration in the global economy," Katz said.

Shares of the Fort Lauderdale, Florida-based company were trading at $1.93 Monday morning on Nasdaq. (Reporting by Anne Pallivathuckal in Bangalore; Editing by Vinu Pilakkott)