Given the extent of the economic decline i would imagine that consumers worldwide are being a bit more careful with their spending on luxury or discretionary products. Nowdays i rarely make a purchase that is not discounted at least 25% off retail. Given that a large percentage of their product is purchased overseas, stateside perfume retailers should (if smart) be able to weather the downturn quite nicely by offering more of these enticing sales. After all, the recent strengthening of the US dollar has lowered their cost of goods purchased overseas by more than thirty percent. With the high profit margins, and low costs inherent in the fragrance industry, it should be able to weather the economic downturn well as long as they realize the end consumer is much more price sensitive in todays economy.