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Inter Parfums' Sales Slip in Q2 2009
Posted: July 28, 2009
Inter Parfums, Inc. announced that net sales for the second quarter of 2009 were approximately $88.6 million, down 10.6% from $99.1 million in the same period in 2008. At comparable foreign currency exchange rates, net sales were down 3%. European-based operations generated sales of $79.4 million as compared to $83.9 million in the same period last year. Second quarter sales by U.S.-based operations declined to $9.2 million from $15.2 million.
Through the first half of 2009, net sales were $179.0 million, or 19.4% below the $222.2 million reported in the first half of 2008. At comparable foreign currency exchange rates, net sales were down 13%. Based upon its new product launch schedule, as well as the seasonality of its business, the company expects a stronger second half and continues to look for 2009 net sales of $390 million, with net income of approximately $21.0 million or $0.70 per diluted share.
“In light of the worldwide decline in consumer spending and the corresponding destocking of fragrance inventories by distributors and retailers, our 10.6% decline in net sales is rather modest and considerably less than many of our peers," said Jean Madar, chairman and CEO, Inter Parfums. "Of that amount, the continued strength of the U.S. dollar relative to the euro was responsible for about 6.5% of the decline. As was the case in the first quarter, the second quarter bar was set quite high last year when sales by European-based operations were 19% ahead of the same period one year earlier with much of the gain due to the rollout of Burberry The Beat for women. Of special note, Lanvin, our second largest prestige brand, has proven somewhat resilient to the economic downturn with year-to-date sales running 25% ahead of last year in local currency due to the continued strength of Eclat d’Arpège, reorders of Jeanne Lanvin, which debuted in the fall of 2008, and the good response to Lanvin L’Homme Sport this spring.”