Top Companies Report

32. Inter Parfums

July 13, 2010

New York, NY
212.983.2640
www.interparfumsinc.com
Sales: $409 million


Sales:
$409 million. Net income: $22 million

Key Personnel:
Jean Madar, chairman and chief executive officer, Russell Greenberg, executive vice president, chief financial offer, Andy Clarke, president, specialty retail; Alex Canavan, vice president, warehousing and distribution; Michelle Habert, controller; Michael Bes, vice president, retail sales; Philippe Benacin, president, chairman and chief executive officer, Inter Parfums S.A.

Major Products:
Fragrances and related products. Prestige—Burberry, Van Cleef & Arpels, Lanvin, Paul Smith, Quiksilver, Roxy and S.T. Dupont. Specialty retail—Banana Republic, bebe, Brooks Brothers Gap, New York & Company. Mass market—Apple, Aziza, Intimate, Johnson Parker, Jordache Fragrances, Royal Platinum, Jean Philippe Apothecary and Jean Phillip Paris

New Products:
Burberry cosmetics collection, new scents from Burberry (Burberry Sport) and Van Cleef & Arpels (Oriens); Montblanc fragrances (distribution)

Comments:
Last year was not a kind one to fine fragrance marketers as Inter Parfums can attest. While there was positive movement in the fourth quarter, it wasn’t enough to keep sales ahead of 2008 results. For 2009, net sales slid 8% to just over $409 million. At comparable foreign currency rates, net sales also declined 8%. The company’s European-based operations recorded a 6% decline in sales to $361.7 million, and U.S.-based operations recorded a net sales decline of 20% to $47.8 million.Results so far in 2010 are far more encouraging. First quarter sales rose 32% to $119.4 million (at comparable currency exchange rates sales jumped 29%). European-based operations jumped 32% and U.S.-based operations recorded a 32% rise in sales. Gross margins were 60.1% compared to 59.2% in the first quarter one year ago.

“Building upon the momentum of last year’s fourth quarter, 2010 is off to a strong start,” said Russell Greenberg, executive vice president and chief financial officer.

The company has plenty to look forward to—this month marks the debut of the Burberry cosmetics collection, which will be carried in 30 shops, and distribution commences for Montblanc legacy fragrances. A new Montblanc scent is scheduled for Spring 2011.

In addition, shoe fanatics are chomping at the bit, as Inter Parfums signed as 12-year licensing agreement that will allow women to spritz Jimmy Choo fragrance on their wrists—an easier (and more affordable) endeavor than walking in the brand’s stilettos. The scent is due out next spring.