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US Continues to Build Inter Parfums Financial Results
Posted: January 28, 2014
Inter Parfums, Inc. announced that, for the three months ended December 31, 2013, net sales of the company’s ongoing brands (excluding Burberry brand sales) increased 19% to $105.5 million, as compared to $88.8 million for the corresponding period of the prior year. Consolidated 2013 fourth quarter net sales declined 40% when Burberry sales are included in the prior year period. At comparable foreign currency exchange rates, consolidated fourth quarter net sales also declined 40%. Total net sales for 2013 (excluding Burberry) increased nearly 23% to $433 million from 2012’s $352.7 million.
European-based sales for the three-month period ending December 31, 2013, were $78.4 million, a drop of 48% from the same time period in 2012 ($152.4 million). For the full year ended December 31, 2013, European-based sales were $464.3 million, a 19% decrease from 2012's $571.8 million in sales.
Discussing European-based operations Jean Madar, chairman and CEO of Inter Parfums, noted, “The year closed on a very strong note as our ongoing brands delivered robust growth of 21% in the fourth quarter. For the final quarter of 2013, Montblanc brand sales rose more than 42% driven by the exceptional success of Legend fragrances. Jimmy Choo sales rose 11%, propelled by strong demand for the brand’s signature fragrance, as well as Flash, a new women’s scent launched early in the year. Lanvin sales remained on a growth trajectory reflecting the spring 2013 launch of Lanvin Me and the ongoing appeal of Eclat d’Arpège, after more than a decade on the market. Additionally, the performances of the Repetto signature scent introduced in May and Place Vendôme from Boucheron launched in the fall have exceeded our expectations. We are also pleased with the upturn in Van Cleef & Arpels fragrance sales, thanks in great part to the promising start for the new Rêve line and steady performances by the First and Collection Extraordinaire lines.”
For U.S.-based sales for the three months ending December 31, 2013, Inter Parfums recorded an 11% increase, $27.1 million in sales versus the same period in 2012's $24.5 million. For the full year, sales increase 21% to $99.2 million in the U.S., up from 2012's $82.3 million.
Madar noted, “Our U.S.-based operations continue to become a more significant portion of our overall sales as we are enlarging our portfolio of brands, expanding distribution of the brands, and adding value to existing brands with new scents. During the fourth quarter, in the absence of major launches for U.S.-based products, we achieved 11% sales growth. The increase was due to a number of factors, including the successful rollout of La Vie de Bohème by Anna Sui in the fall, taking over Alfred Dunhill legacy fragrances in April and Agent Provocateur legacy scents in the fall, as well as from the third quarter launch of new scents for Banana Republic and bebe.”
Madar concluded, “We are very enthusiastic about 2014, which is shaping up to be one our largest new product launch years in our history on both sides of the Atlantic with new scents rolling out for Balmain, Karl Lagerfeld, Jimmy Choo, Montblanc, S.T. Dupont, Alfred Dunhill, Shanghai Tang and Agent Provocateur.”
Russell Greenberg, executive vice president and CFO at Inter Parfums stated of 2013/2014 guidance, “Our 2013 net sales were in line with the guidance we provided in November and therefore we see no reason to change current earnings guidance of income attributable to Inter Parfums, Inc. of $1.23 per diluted share, as we followed through with our previously announced plans to make significant fourth quarter investments in advertising and promotion in support of new product launches and the worldwide development of the Lanvin, Jimmy Choo and Montblanc brands. We look forward to reaping the returns on these investments throughout 2014 and beyond.”
Greenberg continued, “With respect to our 2014 outlook, we are maintaining our guidance for net sales of approximately $495 million, which represents approximately 15% growth of our ongoing brands. Our expectations for net income attributable to Inter Parfums, Inc. remain in the range of $0.93 to $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.