January 26, 2010 / 11:07 PM / 10 years ago

UPDATE 1-Parlux says CEO resigns, names replacement

* Says CEO Neil Katz resigned

* Names Frederick Purches CEO

* Sees Q3 sales $50 mln

* Sees Q3 net loss about $5 mln

Jan 26 (Reuters) - Parlux Fragrances Inc PARL.O said its CEO Neil Katz resigned due to “philosophical differences regarding the future direction of the company” and named its founder Frederick Purches as its new CEO.

The company also cut its third-quarter sales forecast to $50 million from $52 million, citing larger than expected product returns from U.S. department store customer.

Parlux, which holds licenses for brands including Paris Hilton, Jessica Simpson and Guess, forecast a third-quarter loss of about $5 million.

Katz is expected to remain with the company as a director and consultant, Parlux said.

Purches was previously chief executive of Helena Rubinstein/Giorgio Armani Fragrances before founding Parlux.

Shares of the Fort Lauderdale, Florida-based company closed at $1.82 Tuesday on Nasdaq. (Reporting by Vidya Lakshmi in Bangalore; Editing by Jarshad Kakkrakandy)

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