Inter Parfums Reports 2Q Performance
For the second quarter of 2014, Inter Parfums, Inc. net sales of ongoing brands (excluding Burberry brand sales) increased 22.1% to $118.2 million; at comparable foreign currency exchange rates, net sales of ongoing brands increased 20.0%.
Reported net sales of $118.2 million were up 0.6% compared with $117.5 million in the 2013 second quarter when Burberry brand sales were included, according to the company.
European-based operations generated sales of ongoing brands of $94.7 million, up 31.2% from $72.1 million while sales by U.S.-based operations were down slightly at $23.5 million, compared to $24.7 million in the same quarter a year ago.
Operating margin was 10.9% of net sales compared to 6.7% of net sales and net income attributable to Inter Parfums was $6.1 million compared to $3.8 million.
“With respect to European-based operations, new product launches and the continuing success of several established scents produced the 31.2% increase in second quarter sales of ongoing brands,” noted Jean Madar, chairman and CEO of Inter Parfums. “Montblanc fits both categories as brand sales were up 88% due to the spring launch of Emblem coupled with the strong performance of the brand’s Legend fragrances.”
According to Madar, one of the highlights of 2014 was the debut of the Karl Lagerfeld fragrance duo which contributed approximately $4 million in incremental sales for the quarter.
“In addition, sales of existing collections by S.T. Dupont and Paul Smith, the Repetto signature scent, and Lanvin’s Eclat d’Arpuge exceeded those of last year’s second quarter. Together these gains more than offset the 6% comparable quarter decline in Jimmy Choo brand sales; as previously noted, in last year’s second quarter, Jimmy Choo brand sales rose more than 40% driven by the launch of Flash. Later this fall, Jimmy Choo Man is unveiling, and with better than expected pre-orders, we anticipate that this new scent will be a catalyst for growth in brand sales,” said Madar.
According to the decline in US-based sales “was in great part attributable to the challenging comparison with last year’s second quarter when we commenced sales of Dunhill legacy fragrances.”
Madar expects brand momentum to build as Icon, the firm’s all new Dunhill scent, makes a selective debut late this year and rolls out more broadly in 2015.
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