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Europe Performs Well in Inter Parfums’ Three-Month Results Ending June 30, 2014
Posted: July 24, 2014
Inter Parfums, Inc. announced that, for the three months ended June 30, 2014, net sales of the company’s ongoing brands (excluding Burberry brand sales) increased 22.1% to $118.2 million, as compared to $96.8 million for the corresponding period of the prior year. At comparable foreign currency exchange rates, consolidated second quarter net sales from ongoing brands increased 20%. When including Burberry brand sales, consolidated 2014 second quarter net sales increased 0.6% as Burberry brand sales amounted to $20.7 million for the second quarter of 2013 and represented the sale of inventory to Burberry and authorized sell-off of remaining Burberry finished goods. Inter Parfums plans to issue results for the 2014 second quarter on or about August 11, 2014.
For its European-based sales, Inter Parfums reported $94.7 million in sales for the three months ended June 30, 2014, a 31.2% increase from sales of $72.1 million in the same time period in 2013. For U.S.-based sales for the three months ended June 30, 2014, results were $23.5 million, a -4.7% decreased compared to sales of $24.7 million for the same time period in 2013.
Discussing European-based operations Jean Madar, chairman and CEO of Inter Parfums, noted, “New product launches helped drive the 31.2% increase in second quarter ongoing brand sales. Montblanc brand sales were up 88% with the spring launch of the second men’s line, Emblem, in addition to the steady gains from the brand’s Legend fragrances. Also in the spring, our first Karl Lagerfeld fragrances were introduced; these signature scents for men and women delivered approximately $4 million in incremental sales during the second quarter of 2014. Our top line also benefited from solid performances by Repetto’s signature scent, along with improving sales of existing collections from S.T. Dupont and Paul Smith. In last year’s second quarter, Jimmy Choo brand sales rose more than 40% driven by the launch of Flash, which helps to explain why Jimmy Choo sales declined 6% in the current second quarter when no new products were introduced. However, based on a higher than expected backorder log for Jimmy Choo Man to be launched in the fall, more robust sales are anticipated for the second half. Lanvin also faced a difficult comparison against the launch of Lanvin Me in the prior year period; however, a strong performance by the Eclat d’Arpège enabled the brand to slightly exceed its 2013 second quarter sales.”
Madar further noted, “U.S.-based sales declined modestly due to a challenging comparison with the prior year period when we took over the manufacture and distribution of Dunhill legacy fragrances. However, we are growing that brand and the others that we added in late 2012 and 2013 by launching new products and pursuing expanded distribution. In that regard, we will begin shipping our first all new Dunhill fragrance called Icon during the fourth quarter of 2014, and will be in selective distribution until early 2015. Our early spring launches, Fatale and Fatale Pink for Agent Provocateur, have been well received in international markets, and we expect momentum to continue with the commencement of U.S. sales in the fall. Initial distribution of La Nuit de Bohème for Anna Sui began in June, and will culminate late this year with its debut in China. We also plan to launch our inaugural fragrance collection for Shanghai Tang in China later this year, followed by a select international roll-out in 2015.”
Russell Greenberg, Inter Parfums’ executive vice president and CFO, stated of the 2014 guidance, “With respect to our 2014 outlook, we continue to expect net sales of approximately $495 million, which represents nearly 15% growth of our ongoing brands. We are narrowing our guidance for net income attributable to Inter Parfums, Inc. to the range of $0.93–0.95 per diluted share. As in the past, we will update our guidance as appropriate as the year progresses and our visibility improves.” Guidance assumes the dollar remains at current levels.