European Sales Pick Up Slack for US Drop for Inter Parfums

Inter Parfums, Inc. announced that net sales for the three months ended March 31, 2013 were $213.8 million, up more than 29.3% compared to $165.4 million in the same period last year. At comparable foreign currency exchange rates, net sales for the first quarter were up 29.4%.

European-based sales were at $195.1 million for the period, up 34.4% from the same time period in 2012 (which saw sales of $145.2 million). U.S.-based sales were $18.7 million for the quarter, a decline of 7.6% from the $20.2 million in sales from the same period in 2012.

Discussing European-based operations Jean Madar, chairman and CEO of Inter Parfums, noted, “Excluding Burberry sales from both the current and prior year’s first quarter, European-based product sales increased 15.5% to $85.5 million in the current period versus $74 million in last year’s first quarter. Our major ongoing brands performed very well in the first quarter of 2013. Jimmy Choo led the way with year-over-year sales growth of over 50% driven in part by the very promising start for Flash, the brand’s second fragrance line which we launched in January. The continued growth of Eclat d’Arpège contributed to the 18% increase in Lanvin sales along with the launch of Lanvin Me, and the steady performance by Jeanne Lanvin. Sales of Montblanc Legend fragrances continue to perform exceptionally well resulting in a 39% increase in comparable quarter 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, “Last year’s first quarter was somewhat of an anomaly, with sales 71% ahead of 2011’s first quarter due primarily to initial sales of Anna Sui fragrances. Also during the 2012 first quarter, we launched Love Fury by Nine West and Wildbloom Vert for Banana Republic. In other words, the bar was set unusually high, making the comparable quarter sales decline understandable. Toward the end of the current first quarter, we launched Desire by bebe and the initial reaction has been very good. Last month, our U.S.-based operations took over the manufacture and distribution of legacy Alfred Dunhill fragrances, and we look forward to reporting on this initiative, as well as new product launches currently in the works, as the year unfolds.”

Based upon its strong first quarter performance and expectations for the remainder of the year, the company is raising its 2013 guidance and currently expects net sales to reach approximately $510 million resulting in net income attributable to Inter Parfums, Inc. of between $1.00 and $1.02 per diluted share. Previous guidance called for net sales of $480 million with resulting net income attributable to Inter Parfums, Inc. in the range of $0.90 to $0.92 per diluted share.