The Rama (Rabbi Moshe Isserles of Cracow, 1525-1572), in the context of the laws of Yom Tob (Orah Haim 511:4), codifies the prohibition of "Molid Reha," which means making something fragrant. It is forbidden to apply a fragrant substance, such as a spray, to a garment, such as a shirt, or even a handkerchief, on Shabbat or Yom Tob. Although it is permissible to apply perfume or cologne to one’s body or hair, one may not apply a fragrant spray to his clothing on Shabbat or Yom Tob.
The Halachic authorities address the question of whether it is permissible to wrap the Etrog on Sukkot in the flax hair that many people use to protect their Etrogim, as this has the effect of making the material fragrant. The Mishna Berura (Rav Yisrael Meir Kagan, 1839-1933) rules that as long as the Etrog had already been in the flax hair before Shabbat or Yom Tob, and thus the hair was already fragrant, one may wrap the Etrog on Shabbat or Yom Tob.
These Halachot are codified by Rav Natan Ben Sanior in his Ner Le’siyon (listen to audio recording for precise citation).
Summary: Although it is permissible to apply perfume or cologne to one’s body or hair on Shabbat and Yom Tob, one may not apply a fragrant spray to one’s clothing.
