03.09.11
Inter Parfums, Inc. reported favorable results for the fourth quarter and year ended Dec. 31, 2010. For fiscal 2010, net sales increased 12.4% to $460.4 million.Net income rose 18.9% to $26.6 million.
For the Q4, net sales stayed almost flat at $112.4 million. Sales by U.S.-based operations were up 2% to $17.0 million, while European-based operations generated sales of $95.5 million. Net income increased 14.5% to $6.2 million.
Russell Greenberg, executive vice president and chief financial officer of Inter Parfums, commented, “The economic rebound coupled with several major new product launches produced meaningful sales growth across all major prestige brands and in all geographic regions in 2010. For our U.S.-based operations, 2010 sales growth was also spurred by the economic recovery as well as new product launches and greater international distribution of the specialty retail brands for which we develop, produce and sell product.”
He continued, “The gross margin improvement for the fourth quarter and the year is primarily due to product mix within our European-based brand assortment, as sales of higher margin, larger sized products increased, while lower margin promotional sales, including gift with purchase items, decreased. Overall in 2010, the strength of the U.S. dollar relative to the euro provided a gross margin benefit approximating 2009’s use of foreign currency forward exchange contracts.”
Discussing European-based operations Jean Madar, chairman of the board and chief executive officer, noted, “The addition of Montblanc in mid-2010 and Boucheron near year-end has expanded the foundation upon which we expect to continue to grow our prestige business. In the first quarter of 2011, the selective launch of the Jimmy Choo signature fragrance began, with wider distribution planned throughout the year, and come spring, Legend, our first new men’s scent under the Montblanc brand, will make its debut. Most importantly, we are planning a launch of a new Burberry fragrance family in 2011. Other prestige fragrance launches for 2011 include a collection for men and women under the Paul Smith brand, a seasonal scent for Lanvin and a flanker fragrance for Van Cleef & Arpels. I am also pleased to report that Inter Parfums Luxury Brands is now in operation, giving us greater control over the U.S. distribution of our growing list of prestige brands.”
On the subject of U.S.-based operations, Madar went on to say, “In 2011, in addition to brand extensions for most of the specialty retail brands in our portfolio, new product launches are in the works or planned for later this year. A new women’s fragrance, Wildbloom under the Banana Republic label, is now in stores. Building upon the success of Close and Stay for women and Core for men, new scents for both men and women are planned for the Gap brand. For our newest brands, we have our first new scents for Betsey Johnson and Nine West debuting in the fall. Finally, our third fragrance for bebe is unveiling this summer.”
For the Q4, net sales stayed almost flat at $112.4 million. Sales by U.S.-based operations were up 2% to $17.0 million, while European-based operations generated sales of $95.5 million. Net income increased 14.5% to $6.2 million.
Russell Greenberg, executive vice president and chief financial officer of Inter Parfums, commented, “The economic rebound coupled with several major new product launches produced meaningful sales growth across all major prestige brands and in all geographic regions in 2010. For our U.S.-based operations, 2010 sales growth was also spurred by the economic recovery as well as new product launches and greater international distribution of the specialty retail brands for which we develop, produce and sell product.”
He continued, “The gross margin improvement for the fourth quarter and the year is primarily due to product mix within our European-based brand assortment, as sales of higher margin, larger sized products increased, while lower margin promotional sales, including gift with purchase items, decreased. Overall in 2010, the strength of the U.S. dollar relative to the euro provided a gross margin benefit approximating 2009’s use of foreign currency forward exchange contracts.”
Discussing European-based operations Jean Madar, chairman of the board and chief executive officer, noted, “The addition of Montblanc in mid-2010 and Boucheron near year-end has expanded the foundation upon which we expect to continue to grow our prestige business. In the first quarter of 2011, the selective launch of the Jimmy Choo signature fragrance began, with wider distribution planned throughout the year, and come spring, Legend, our first new men’s scent under the Montblanc brand, will make its debut. Most importantly, we are planning a launch of a new Burberry fragrance family in 2011. Other prestige fragrance launches for 2011 include a collection for men and women under the Paul Smith brand, a seasonal scent for Lanvin and a flanker fragrance for Van Cleef & Arpels. I am also pleased to report that Inter Parfums Luxury Brands is now in operation, giving us greater control over the U.S. distribution of our growing list of prestige brands.”
On the subject of U.S.-based operations, Madar went on to say, “In 2011, in addition to brand extensions for most of the specialty retail brands in our portfolio, new product launches are in the works or planned for later this year. A new women’s fragrance, Wildbloom under the Banana Republic label, is now in stores. Building upon the success of Close and Stay for women and Core for men, new scents for both men and women are planned for the Gap brand. For our newest brands, we have our first new scents for Betsey Johnson and Nine West debuting in the fall. Finally, our third fragrance for bebe is unveiling this summer.”