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Inter Parfums Reports Q1 2014 Results
Posted: May 8, 2014
Inter Parfums, Inc. reported results for the first quarter ended March 31, 2014. For its first quarter 2014 (with comparisons to first quarter 2013), the company saw net sales of ongoing brands (excluding Burberry brand sales) increase 17% to $121.7 million from $104.1 million; at comparable foreign currency exchange rates, net sales of ongoing brands increased 16%. Reported net sales of $121.7 million were 43% below the $213.8 million reported in the 2013 first quarter when Burberry brand sales were included, and European-based operations generated sales of ongoing brands of $102.3 million, up 20% from $85.4 million, while sales by U.S.-based operations were $19.4 million, up 4% from $18.7 million.
Jean Madar, chairman and CEO of Inter Parfums commented, “As we reported, we achieved strong growth from our ongoing brands. Excluding Burberry from the prior year quarters, European-based product sales were up 20% year-over-year to $102.3 million. Top line growth was especially strong in North America, South America and Western Europe, which more than offset the decline in Eastern Europe. We are especially pleased by the initial response to our first scents for the Karl Lagerfeld brand which debuted in March and contributed more than $13 million in incremental sales. In addition, Montblanc brand sales rose 37% as a result of steady gains from Legend fragrances along with the recent launch of Emblem, the second men’s scent created for the brand.”
He continued, “As we reported last month, the 25% decline in first quarter Jimmy Choo brand is better understood in the context of the last year’s 50% comparable quarter increase in brand sales. With better than expected backorders for Jimmy Choo Man launching in the fall, we expect a gain in full year brand sales. The Lanvin brand, which also had a challenging comparison to the prior year period, is particularly strong in Eastern Europe and Russia, where the market downturn was a key factor in depressed brand sales. However, with the introduction of Lanvin Me L’Eau later in the year, Lanvin brand sales are expected to improve.”
Madar further noted, “With regard to U.S.-based operations, we began shipping Fatale and Fatale Pink to Agent Provocateur stores and select international markets for the upcoming launch. For Alfred Dunhill, in addition to our newly redesigned packaging for several Alfred Dunhill legacy scents, we have a major new brand launch coming later in the year. We have also created several selective distribution items for the Anna Sui brand. Sui Dreams in Pink launched exclusively in Japan and regional rollouts are planned for the brand extension, La Nuit de Bohème, in the Middle East and Asia later this year. In addition, we have the inaugural fragrances for Shanghai Tang scheduled to launch in namesake stores late in the year with global rollout planned for 2015."
And Russell Greenberg, executive vice president and CFO of Inter Parfums, Inc., reaffirmed the company’s 2014 guidance, stating, “With respect to our 2014 outlook, we are maintaining our guidance for net sales of approximately $495 million, which represents nearly 15% growth of our ongoing brands. Our expectations for net income attributable to Inter Parfums, Inc. remain in the range of $0.93–0.98 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.