Inter Parfums, Inc. announced that, for the three months ended March 31, 2014, net sales of the company’s ongoing brands (excluding Burberry brand sales) increased 17% to $121.7 million, as compared to $104.1 million for the corresponding period of the prior year. At comparable foreign currency exchange rates, consolidated first quarter net sales from ongoing brands increased 16%. Consolidated 2014 first quarter net sales declined 43% as Burberry brand sales were included in the prior year period. Inter Parfums plans to issue results for the 2014 first quarter on or about May 7, 2014.
For the three months ended March 31, 2014, European-based product sales for its ongoing brands were $102.3 million, a 19.8% increase from the sales of $85.4 million for the same time period in 2013. For U.S.-based ongoing product sales for the three months ended March 31, 2014, sales were $19.4 million, up 3.9% from the first three months of 2013’s $18.7 million in sales.
Discussing European-based operations Jean Madar, chairman and CEO of Inter Parfums, noted, “New product launches were the primary catalyst for the strong start in 2014, with sales of ongoing brands increasing 19.8%. That includes signature scents for both men and women for the Karl Lagerfeld brand, which yielded more than $13 million in incremental sales. Montblanc sales rose 37% as a result of steady gains from Legend fragrances along with the recent launch of Emblem, the second men’s scent created for the brand. Boucheron and Van Cleef & Arpels performed well during the quarter due, in part, to increasing momentum from the 2013 introductions of Place Vendôme and Rêve, respectively. Balmain fragrances got off to a good start for the year following higher than expected initial in-store sales for the Extatic line launched in January. In last year’s first quarter, Jimmy Choo brand sales rose 50% driven by the launch of Flash, which helps to explain why Jimmy Choo sales declined 25% in the current first quarter when no new products were introduced. However, based on higher than expected backorders for Jimmy Choo Man to be launched in the fall, more robust sales are anticipated for the second half. Lanvin also had a challenging comparison to the prior year period, which benefited from the launch of Lanvin Me and the exceptional performance of Eclat d’Arpège, resulting in a reduction in sales of 16% in the first quarter of 2014. With the introduction of Lanvin Me L’Eau later in the year, Lanvin brand sales are expected to pick up.”
Madar further noted, “We have significantly expanded the brand portfolio of our U.S.-based operations over the past 18 months and will be aggressively building on this platform throughout 2014 with new products. Most recently, in March we launched Fatale and Fatale Pink for Agent Provocateur, and the initial response has been very favorable. Later in the year, we plan to debut our inaugural fragrances for Shanghai Tang, Alfred Dunhill and Oscar de la Renta. In the first quarter of 2014, the growth for our U.S.-based operations was largely attributable to incremental sales of Alfred Dunhill legacy scents, which began in April of 2013.”
Russell Greenberg, Inter Parfums executive vice president and CFO, stated, “With respect to our 2014 outlook, we are maintaining our guidance for net sales of approximately $495 million, which represents nearly 15% growth of our ongoing brands. Our expectations for net income attributable to Inter Parfums, Inc. remain in the range of $0.93–0.98 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.