However, the drop in sales was seasonal. The company reported 2008’s net sales of $446.3 million were up 15% from the prior year.
Jean Madar noted, “For 2008, the three largest brands within our European based operations all showed strong growth in local currency with Burberry up 10%, Lanvin up 17% and Van Cleef & Arpels up 77%. Sales by U.S.-based operations in 2008 included domestic sales of our first new Brooks Brothers fragrance collection and the international distribution of Gap and Banana Republic personal care products. The year-over-year sales comparison is difficult because our 2007 U.S. based product sales included the initial rollout of personal care products to Gap, Inc.’s North American stores as well as the initial launch of personal care products for all New York & Company stores.”
Mr. Madar went on to say, “Although consumer confidence and spending are under pressure in light of the global economic downturn and tight credit markets, we remain cautiously optimistic about the future. We have a high quality portfolio of premium brands and a strong balance sheet, which along with our flexible and proactive business model, have enabled Inter Parfums to weather difficult business environments in the past and should enable us to resume growth once consumer confidence is restored and the economy turns.”