Inter Parfums, Inc. announced that it expects its 2020 net sales to be approximately $442 million, reportedly 38% below net sales in 2019.
Jean Madar, chairman and CEO of Inter Parfums, Inc., said:
The global COVID-19 pandemic and its economic consequences depressed 2020 second quarter sales by over 70%, resulting in a 43.6% decline in first half sales compared to the same period one year earlier. Thus we are reasonably pleased that for the year as a whole, net sales should come in 38% below 2019’s $713.5 million.
The third quarter has continued the favorable trends that began after the April lows, and it looks like the fourth quarter, which includes holiday sales, should be our strongest for the year. Despite pressure on gross margins, and the loss of operating leverage associated with the decline in net sales, we expect to be profitable for the full year thanks to our flexible business model and sharp reduction in advertising and promotion expense.
In addition to the upturn in business in Europe and Asia that we discussed when we announced second quarter results in August, our sales in North America have picked up as well. However, there has been no material change in our travel retail business, and it is unlikely that the duty free segment will make a comeback anytime soon.
We plan to announce 2021 guidance on or about November 13, 2020. It will be a very ambitious year as we resume new product launches in earnest. Our pipeline of new products for the coming year includes our first fragrances for the MCM and Kate Spade New York brands, along with major programs for two of our largest brands, Jimmy Choo and GUESS.
Following the signing of our new Moncler license signed in June, work has begun and will progress through next year on the development of our initial collection for the brand which is scheduled to debut in early 2022.