Burberry may be gone from the Inter Parfums' stable of fragrance brands, but its impact won't be forgotten—at least not for a couple of quarters, anyway. The company said net sales of ongoing brands (excluding Burberry brand sales) increased 17% to $96.8 million; while net sales including Burberry brand sales were down 19.3% to $117.5 million; at comparable foreign currency exchange rates, net sales declined 20.6%; European-based operations generated sales of ongoing brands of $72.0 million, up 15.0% from $62.8 million; including Burberry brand sales, European-based sales were down 26.2%. Sales by US-based operations were $24.8 million, up 24.4%. Net income fell more than 30% to $3.8 million.
Inter Parfums and Burberry terminated their licensing agreement last year. The remaining Burberry inventory generated $20.7 million in second quarter sales.
“We move forward confident in our ability to grow our business through the introduction of new fragrances for our core brands by broadening our distribution channels and by adding new names to our brand portfolion,” said Jean Madar, chairman and CEO. “We recently signed agreements with Shanghai Tang, China’s premiere luxury fashion label and Agent Provocateur, a London-based purveyor of edgy, upscale lingerie.”
For the six months, Inter Parfums’ sales rose nearly 7% to $331.2 million. Net income jumped more than 70% to $75.2 million.