05.08.24
Net Sales for Inter Parfums, Inc. increased 4% in Q1 2024 from the prior-year quarter, from $312 million to $324.
Sales performance was attributed to the introductions of new products, per company CEO Jean Madar.
“We delivered a healthy operating margin of 21% for the quarter, in-line with our expectations,” said Madar. “The 29% operating margin in the 2023 first quarter was exceptionally high due to a large pipeline of new product launches combined with low advertising and promotional expenses. This largely explains the 25% decline in operating income and the 24% decline in earnings per diluted share as compared to prior year quarter.”
North America, the company’s largest market, remains robust despite a 3% decline in comparable quarter sales, due primarily to the concentration of launches in early 2023, Madar said.
Western Europe grew sales by 10%, while Eastern Europe, which declined 22%, was adversely impacted by delays in shipments in certain countries, which resulted in sales shifting from the first quarter into the second quarter.
Asia/Pacific grew sales by 13%, led by Australia and India. Inter Parfums’ sales in Central and South America continued to build with first quarter growth of 31%. The 5% sales decline in the Middle East and Africa factors in the economic and social repercussions of the numerous conflicts in those regions and phased product launches, Madar said.
New Product Launches Drive Sales
During the first quarter, Inter Parfums launched several new fragrances, including extensions within established lines for Oscar de la Renta and Anna Sui. Also debuting in the first quarter were Montblanc Legend Blue, Donna Karan Cashmere Collection, Van Cleef & Arpels Encens Précieux, Karl Lagerfeld Rouge, Rochas Orange Horizon, Kate Spade Bloom, and Lacoste L12.12 Blanc and L12.12 Rose. The company’s first-time sales of established Lacoste and Roberto Cavalli fragrances reinforce our confidence in these two new fragrance brands.
Guess – the company’s fourth largest brand – achieved the greatest sales gain among its top brands at 21% for the quarter.
Madar said an “ambitious innovation strategy” is planned for the remainder of 2024, including fragrances for DKNY and Lacoste, and extensions for the Jimmy Choo I Want Choo line and Roberto Cavalli Signature line. Multi-scent collections for Guess are due to market this spring, followed in the fall by a new member of the GUESS Uomo men’s fragrance family. Extensions for Hollister’s Feelin’ Free and Ferragamo’s Signorina will be unveiled later in the year.