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Inter Parfums, Inc. reported results for the first quarter ended March 31, 2013. Net sales increased 29.3% to $213.8 million from $165.4 million in the first quarter 2012; at comparable foreign currency exchange rates, net sales increased 29.4%. European-based operations generated sales of $195.1 million, up 34.4% from Q1 2012’s $145.2 million, and sales by U.S.-based operations were $18.7 million, down 7.6% from Q1 2012’s $20.2 million. And net income attributable to Inter Parfums, Inc. increased 105% to $31.7 million compared to $15.5 million in Q1 2012.
Jean Madar, chairman and CEO of Inter Parfums, commented, “Sales of our ongoing prestige brands posted strong growth during the first quarter. Excluding Burberry from both the current and prior year quarters, European-based sales were up 15.5% year-over-year to $85.5 million. Sales of Jimmy Choo fragrances benefitted from the successful launch of Flash, which contributed to the 50% comparable quarter increase for the brand. Lanvin sales rose 18%, driven by continued growth from Eclat d’Arpège along with the launch of Lanvin Me and the steady performance by Jeanne Lanvin. Sales of Montblanc Legend fragrances continued to perform exceptionally well resulting in a 39% increase in brand sales. Finally, our association with Burberry fragrances ended on a high note, with a 53% increase in first quarter sales.”
On the subject of U.S.-based operations, Madar noted, “As we reported last month, the 2012 first quarter was somewhat of an anomaly, with sales 71% ahead of 2011’s first quarter due primarily to our taking over distribution of Anna Sui fragrances in January 2012. Making the comparison even more challenging was the launch of Love Fury by Nine West and Wildbloom Vert for Banana Republic in the first quarter of 2012, while the launch of Desire by Bebe did not take place until the end of the current first quarter.”
Madar also noted, “Top line growth was strong in all major markets. Our largest markets—North America, Western Europe and Asia—saw sales increases of 28%, 24% and 29%, respectively, while Eastern Europe, the Middle East, and Central and South America reported sales increases of 96%, 9% and 41%, respectively.”
Russell Greenberg, Inter Parfums’ executive vice president and CFO, concluded, “We had an exceptional first quarter, where profits were extraordinarily strong as the result of substantially increased sales, coupled with lower than typical promotional expense. As we build our business in this new post-Burberry era, we are investing in our ongoing brands, and we anticipate higher promotional expense in succeeding quarters, particularly in the second half as we launch our new Repetto, Van Cleef & Arpels and Boucheron scents, as well as support our first quarter new product launches. However, we are raising our expectations for net income attributable to Inter Parfums, Inc. to a range of $1.10–1.12 per diluted share from $1.00 to $1.02 per diluted share. For now, our net sales guidance remains unchanged at approximately $510 million. As we gain more visibility, we will review and update our guidance as appropriate.” Guidance assumes the dollar remains at current levels.