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Q4 2012 Drops for Inter Parfums, But Full Year 2012 Shows Strength
Posted: March 13, 2013
Inter Parfums, Inc. reported results for the fourth quarter and year ended December 31, 2012. Compared to results from fourth quarter 2011, net sales decreased 6.4% to $176.9 million, down from Q4 2011’s from $189.1 million; at comparable foreign currency exchange rates, net sales declined 7.7%. European-based operations generated sales of $152.4 million, down 10.1% from Q4 2011’s $169.6 million, but sales by U.S.-based operations were at $24.5 million, up 25.9% from Q4 2011’s $19.5 million.
Net sales for 2012 at Inter Parfums were a record $654.1 million, or 6.3% ahead of $615.2 million in 2011. At comparable foreign currency exchange rates, net sales rose approximately 9.4%.
Jean Madar, Inter Parfums’ chairman and CEO, commented, “The past year was highly eventful and productive for our company. In addition to achieving record sales and earnings in the absence of new major product launches, we added two new license agreements with iconic luxury fashion houses, Karl Lagerfeld and Alfred Dunhill. The addition of these brands is representative of our growth strategy as we move into the next phase of our company’s evolution.”
Madar continued, “Our 2012 sales benefitted from strong performances by several of our prestige brands. Notably, Montblanc sales increased 40%, driven by continued momentum of the extremely popular Legend men’s line, our best-selling fragrance for men across our entire prestige portfolio. Jimmy Choo continued to build upon the success of its signature scent with brand sales increasing 26% for the year. Also adding to our growth were sales of Boucheron fragrances during its first full year in our brand portfolio. Sales by U.S. operations benefitted from initial sales under our Anna Sui license, initial sales of travel amenities, plus new product launches and continued global distribution of specialty retail products, especially under the Banana Republic, Gap and Bebe brands.
“Looking ahead, we are extremely enthusiastic about our prospects for growth coming from our core brands, recent additions and hopefully new ones that may be added. In 2013 we have a full slate of product launches underway or planned. Flash by Jimmy Choo, Me by Lanvin and Desire by Bebe have debuted, and we have new products in the pipeline for Van Cleef & Arpels, Boucheron and Repetto, plus brand extensions, flankers and special items for the gift-giving holiday season. Beyond this year, we are moving forward developing new fragrances for the Karl Lagerfeld and Alfred Dunhill brands for launch in 2014,” Madar concluded.
Affirming the company’s 2013 guidance, Russell Greenberg, executive vice president and CFO, commented, “We remain confident in our guidance of $480 million in net sales resulting in net income attributable to Inter Parfums, Inc. in range of $0.90–0.92 per diluted share, which factors in the impact of the transition agreement with Burberry through March 31, 2013 and the inclusion of Alfred Dunhill come April.” Guidance assumes the dollar remains at current levels.