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Inter Parfums Reports $145 Million in Sales for Q2 2012
Posted: August 9, 2012
Inter Parfums, Inc. has reported record results for the second quarter ended June 30, 2012. For the second quarter of 2012, the company recorded a net sales increase of 20% over Q2 2011, to $145.6 million from $121.1 million; at comparable foreign currency exchange rates, net sales rose 29% for the period. European-based operations generated sales of $125.6 million, up 18% from Q2 2011’s $106.5 million, and sales by U.S.-based operations were $20.0 million, up 37% from $14.6 million in Q2 2011. Also, net income attributable to Inter Parfums, Inc. rose 20% from Q2 2011 20% to $6 million compared to $5 million, and basic and diluted earnings per share were $0.20, or 25% ahead of 2011’s $0.16.
Through the first half of 2012, net sales were $310.9 million or 22% ahead of $254.4 million in the first half of 2011. At comparable foreign currency exchange rates, net sales rose approximately 27%. Net income attributable to Inter Parfums, Inc. increased 21% to $21.5 million or $0.70 per basic and diluted share compared to $17.8 million or $0.58 per basic and diluted share.
Russell Greenberg, executive vice president and CFO of Inter Parfums, pointed out, “With strong performances across our prestige brand portfolio, we achieved an 18% increase in European-based sales. U.S.-based operations achieved 37% sales growth, with the inclusion of Anna Sui fragrance sales since the start of the year accounting for much of that gain. The strength of the U.S. dollar also had a significant effect on reported sales as the dollar/euro exchange rate for the three months ended June 30, 2012, was 1.28 compared to 1.44 for the corresponding period of 2011.”
He continued, “Based upon results year-to-date, assuming that the dollar remains at current levels, we stand by our recently updated 2012 guidance calling for net sales of approximately $632million, with resulting net income attributable to Inter Parfums, Inc. of approximately $35.9 million or $1.17 per diluted share.”
Also reviewing the second quarter, Jean Madar, Inter Parfums’ chairman and CEO, noted, “The growth in European-based sales was all the more gratifying given the absence of major new product launches. As we reported, in local currency second quarter sales of Burberry products increased by 34%. Lanvin sales rose by 13%, Montblanc by 72% and Jimmy Choo by 13%. Year-to-date growth by our smaller brands has been very encouraging, especially for Boucheron and S.T. Dupont where new product launches for Jaïpur Bracelet and 58 Avenue Montaigne, respectively, were on a relatively small scale. We have Montblanc Legend for women and a Lanvin brand extension called Jeanne Lanvin Couture also debuting this year.”
On the subject of U.S.-based operations, Madar again pointed out, “In addition to the inclusion of Anna Sui fragrances, second quarter sales benefited from the introduction of Miss Madison by Brooks Brothers, Wishes & Dreams for bebe and a new men’s scent, Wildblue for Banana Republic. Continued sales of our first Nine West fragrance, Love Fury, and ongoing international distribution of the U.S. specialty retail brands in our portfolio also drove second quarter growth.”
Madar closed by saying, “As previously reported, Burberry will buy out the brand’s beauty and fragrance license rights from us for €181 million (approximately $220 million at current exchange rates exclusive of receivables, inventories and other tangible assets) on December 31, 2012. We have planned for this eventuality and face this new chapter in our history with confidence. We expect to begin 2013 with nearly $250 million in cash and shareholders’ equity of approximately $375 million, placing us in an excellent financial position to support the growth of existing brands and further enhance our growth potential by seeking to add new brands to our portfolio either on a proprietary basis or as a licensee. We remain confident that 2013 net sales can reach approximately $400 million, generating a better than 10% operating margin with the remaining brands in our portfolio. We expect to issue more precise 2013 guidance as the new year approaches and we have greater visibility on the timing of new product launches. Our 2013 new product pipeline currently includes new market entrants for: Lanvin, Jimmy Choo, Van Cleef & Arpels, Balmain, Boucheron and Repetto.”