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Inter Parfums, Inc. reported results for the second quarter ended June 30, 2013. Net sales of ongoing brands (excluding Burberry brand sales) increased 17% to $96.8 million from Q2 2012's $82.7 million, while net sales including Burberry brand sales were down 19.3% to $117.5 million; at comparable foreign currency exchange rates, net sales declined 20.6%. European-based operations generated sales of ongoing brands of $72 million, up 15% from $62.8 million in Q2 2012, and including Burberry brand sales, European-based sales were down 26.2%. Sales by U.S.-based operations were $24.8 million, up 24.4% from $20 million in Q2 2012.
Commenting on European-based operations, Jean Madar, chairman and CEO of Inter Parfums, stated, “Our ongoing prestige brands generated impressive comparable quarter sales growth of 15%. With the 2013 launch of Flash, our second fragrance by Jimmy Choo, and continued sales of the brand’s signature scent, Jimmy Choo brand sales rose 43%. Driven by the continued strong demand for its Legend fragrances, Montblanc sales increased 20% compared to the second quarter of 2012. Lanvin sales were up 14% reflecting the continued popularity of Eclat d’Arpège and the recent launch of Lanvin Me, coupled with the steady performance of the Jeanne Lanvin line. In the second half, new product launches and rollouts are in the works for the Repetto signature scent and Place Vendôme by Boucheron.”
Regarding U.S.-based operations, Madar noted, “Sales benefited from strong consumer demand and expanded retail distribution for Anna Sui fragrances, and we expect this brand to gain further momentum following the launch of La Vie de Bohème during the third quarter. Additionally, in April 2013, our U.S.-based operations took over the manufacture and distribution of legacy Alfred Dunhill fragrances, which provided an incremental contribution to second quarter 2013 growth for our U.S. business. In the second half, we have several new products coming to market for Banana Republic and Gap, and an entirely new fragrance family launching for bebe.”
Madar continued, “The remaining Burberry inventory generated $20.7 million in second quarter sales and officially concluded this chapter in our company’s story. We move forward confident in our ability to grow our business through the introduction of new fragrances for our core brands by broadening our distribution channels and by adding new names to our brand portfolio. On the last point, we recently signed agreements with Shanghai Tang, China’s premiere luxury fashion label, and Agent Provocateur, a London-based purveyor of edgy, upscale lingerie. They are two unique brands upon which we plan to build successful fragrance enterprises that capture the aura of each. In addition to adding new brands through licensing or similar arrangements, we are also on the lookout for suitable acquisitions.”
Russell Greenberg, Inter Parfums' executive vice president and CFO, stated, “Last month we raised our sales guidance to approximately $525 million resulting in net income attributable to Inter Parfums, Inc. of approximately $1.14 per diluted share. Obviously, our earnings guidance implies a breakeven second half as we are investing heavily in promotion and advertising to bolster support for the Repetto and Boucheron launches, and the continued worldwide development of the Lanvin, Jimmy Choo and Montblanc brands. Our investments in these brands are expected to yield accelerated sales growth for Inter Parfums, Inc. in the coming years.” Guidance assumes the dollar remains at current levels.