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Inter Parfums Raises Guidance After Financial Report for Three Months Ended June 30, 2013
Posted: July 24, 2013
Inter Parfums, Inc. announced that, for the three months ended June 30, 2013, net sales of the company’s ongoing brands (excluding Burberry brand sales) increased 17% to $96.8 million, as compared to $82.7 million for the corresponding period of the prior year, with strong growth in both its European and U.S.-based operations.
Burberry brand sales amounted to $20.6 million for the second quarter of 2013 and represented the sale of inventory to Burberry and some authorized sell-off of remaining Burberry finished goods generating minimal margins.
When the contribution of Burberry sales is included, consolidated sales for the 2013 second quarter were $117.5 million, down 19.3% compared to $145.6 million in the 2012 second quarter. At comparable foreign currency exchange rates, net sales for the second quarter were down 20.6%.
The company's European-based product sales for the time period were $92.7 million, down 26.2% versus the $125.6 million from the same time period in 2012. U.S.-based product sales for Inter Parfums were $24.8 million for the time period, up 24.4% from the same time period in 2012's $20 million.
Discussing European-based operations, Jean Madar, chairman and CEO of Inter Parfums, noted, “Excluding Burberry sales from both the current and prior year’s second quarter, European-based product sales increased 15% to $72 million in the current period versus $62.8 million in last year’s second quarter. Our major ongoing brands continued to exhibit solid growth in the second quarter. Once again, Jimmy Choo delivered an impressive performance, posting sales growth of more than 40% compared to the prior year period, driven by increasing momentum for Flash, a new women’s scent which we launched in January. Montblanc sales rose more than 20% compared to the second quarter of 2012 propelled by the ongoing success of Legend fragrances. The spring launch of Lanvin Me and the continued growth of Eclat d’Arpège combined to boost Lanvin sales by over 14% versus the prior year period. Van Cleef & Arpels sales rose modestly during the second quarter, boosted by the recent launch of Réve.”
Regarding our 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 energy 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.”
Based upon the strong first half performance of its ongoing brands and expectations for the remainder of the year, Inter Parfums is raising its 2013 guidance and currently expects net sales to reach approximately $525 million resulting in net income attributable to Inter Parfums, Inc. of approximately $1.14 per diluted share. Previous guidance called for net sales of $510 million with resulting net income attributable to Inter Parfums, Inc. in the range of $1.10 and $1.12 per diluted share.
As noted in the company’s report of first quarter results, profitability has well exceeded its initial targets. As such, for the remainder of the year, Inter Parfums plans to invest 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. Its 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.