Inter Parfums’ Sales Up, Expands Gap Agreement
l Inter Parfums, Inc. said net sales for the fourth quarter rose 3% to $65.7 million. Net income rose 11% to $3.9 million.
For the full year, sales rose 16% to a record $273.5 million. Prestige product sales rose 22% for the year and represented 89% of consolidated sales while mass market sales declined 18% in 2005. Net income declined 3% to $15.3 million.
In addition, Inter Parfums Inc., which makes perfumes under license for Burberry, Lanvin and other designer brands, said it would make personal care products for outlet and factory stores for Gap Inc., expanding a previous agreement between the two companies. Financial terms were not disclosed.
Inter Parfums said it would oversee manufacturing, manage existing inventory and develop new products for Gap outlet and Banana Republic factory stores in North America. Under a deal the companies signed in July 2005, Inter Parfums agreed to take charge of product development, formula creation, packaging and manufacturing of personal care products, while Gap agreed to handle marketing and selling in its stores. Inter Parfums said it would set up a dedicated marketing and product development team for the outlet and factory stores. The new products are scheduled to start reaching stores before the 2006 holiday season.