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Strong Dollar Impacts Inter Parfums Results

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Following its acquisitions of Coach fragrances and Rochas, Inter Parfums, Inc. has announced net sales for the three months ended March 31, 2015 of $109.2 million, compared to $121.7 million in the first quarter of 2014.

EU sales dropped 15.2% year-over-year, while US sales rose 16.0%. The overall impact was a decline of 10.3%.

The company cited the strong U.S. dollar vs the euro as a key contributor to the decline.

For 2015, the company is expecting $470 million in sales, an overall 7% increase year-over-year.

“The decline in sales is also due in large part to the difficult comparison for the Karl Lagerfeld brand," said CEO and chairman Jean Madar, discussing the European-based operations. "The launch of Karl Lagerfeld’s signature scents for both men and women yielded more than $13 million in sales in 2014, as compared to brand sales of $2.5 million in 2015. With a new Karl Lagerfeld product launch scheduled for later this year, we expect to see more robust brand sales."

He added, "The nearly 20% depreciation of the euro versus the dollar masked many of the gains in comparable quarter sales volume. For example, Montblanc fragrances experienced a 19% sales increase in local currency, as compared to a 2% decline in dollars with Montblanc Legend and Emblem as the two main sales drivers. Jimmy Choo fragrances also performed exceptionally well with sales up 52% in local currency but up only 25% in dollars, reflecting the continued momentum of the Jimmy Choo Man scent launched late last year and the recent launch of Jimmy Choo Blossom. Our third largest brand, Lanvin had a modest 3% decline in local currency sales.”

Discussing U.S.-based operations, Madar noted, “The 16% increase in first quarter sales reflects two new product launches, Extraordinary by Oscar de la Renta and Icon by Dunhill along with continuing sales of Agent Provocateur fragrances which began in earnest in the second half of 2014.”