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Inter Parfums, Inc. reported its results for the fourth quarter ended December 31, 2013. Net sales of ongoing brands (excluding Burberry brand sales) increased 19% to $105.5 million from $88.8 million in the fourth quarter 2012; however, reported net sales of $105.5 million were 40% below the $176.9 million reported in the 2012 fourth quarter when Burberry brand sales aggregated $88.1 million; at comparable foreign currency exchange rates, net sales also declined 40%.
European-based operations generated sales of ongoing brands of $78.4 million, up 22% from $64.1 million in Q4 2012; including Burberry brand sales, European-based sales were down 48%. Sales from the company’s U.S.-based operations were $27.1 million, up 11% from $24.5 million in Q4 2012.
Excluding Burberry brand sales, net sales for 2013 increased nearly 23% to $433 million from 2012’s $352.7 million. Reported net sales for 2013 were $563.6 million as Burberry brand product sales aggregated $130.6 million and were heavily concentrated in the first quarter. In 2012, reported net sales were $654.1 million and included $301.4 million of Burberry brand sales for the full year.
Jean Madar, chairman and CEO of Inter Parfums, Inc., noted, “We are extremely enthusiastic about the outlook for our business. Sales from ongoing brands are generating excellent growth; we have recently added several important high potential brands to our portfolio; our balance sheet remains very strong; we have a global distribution network reaching over 100 countries; and our new product pipeline for 2014 is one of the most ambitious in recent years.”
He continued, “For 2014, new product launches have begun with a selective, targeted distribution of a new women’s scent for Balmain called Extatic. Broad-based distributions are planned for our new Montblanc men’s fragrance Emblem, which is coming to market this spring as are our first men’s and women’s scents for the Karl Lagerfeld brand. We also have our first men’s scent for the Jimmy Choo brand in the works, plus a fragrance duo for S.T. Dupont. There are a number of firsts in the 2014 pipeline for our U.S.-based operations. We have our first new scents for Agent Provocateur, Fatale and Fatale Pink, coming to market in the spring. In the fall we are planning an Asian debut for our first new Shanghai Tang collections, and before year-end we expect to have major launches underway for a new Alfred Dunhill scent for men and a new Oscar de la Renta scent for women. We also have new product launches scheduled to rollout for our more established brands, including Brooks Brothers and Banana Republic, plus a host of flankers, new packaging concepts and extensions throughout our U.S. operations brand portfolio.”
Russell Greenberg, executive vice president and CFO of Inter Parfums, Inc., stated, “Comparing like quarters has not been particularly meaningful since the fourth quarter of 2012. This is due primarily to the termination of the Burberry license in December 2012 and its associated gain, which was immediately followed by a transitional 2013 first quarter when we sold off much of the remaining Burberry inventory and recorded exceptionally high levels of Burberry brand sales, but incurred virtually no associated advertising and promotion expenses. Year-over-year quarterly comparisons should become more meaningful beginning in the second half of 2014.”
In affirming 2014 guidance, Greenberg stated, “We continue to expect net sales of approximately $495 million for a nearly 15% year-over-year sales improvement by our ongoing brands, resulting in net income attributable to Inter Parfums, Inc. in the range of $0.93 to $0.98 per diluted share.” Guidance for 2014 assumes the dollar remains at current levels.