Inter Parfums Reports 2019 Q2 Net Sales

Inter Parfums Inc. has revealed that for the three months ended June 30, 2019, net sales increased 11.3% to $166.2 million as compared to $149.4 million for the corresponding period of the prior year. At comparable foreign currency exchange rates, consolidated second quarter net sales increased 13.7%. Of note, the average dollar/euro exchange rate for the current second quarter is 1.12 compared to 1.19 in the second quarter of 2018. Inter Parfums plans to issue results for the 2019 second quarter on or about August 5, 2019.
 
On the subject of European based operations, Jean Madar, chairman & CEO of Inter Parfums stated, “Montblanc, our largest brand, had a stellar second quarter, with comparable quarter sales growth of 28.3%, attributable to the brand’s newest scent, Montblanc Explorer, as well as to the brand’s portfolio of established fragrances. With regard to our second largest brand, Jimmy Choo, fragrance sales declined nearly 20%, but due to the 25.8% sales increase in the first quarter, were up slightly through the first half of 2019. The popularity of our entire Coach fragrance portfolio, along with the better than expected performance of the new flanker, Coach Floral Blush, spurred the 43.8% increase in second quarter sales by our third largest brand, which more than offset the 22.3% drop in the first quarter. As expected, the recent launch of A Girl in Capri, boosted Lanvin brand sales countering much of the decline in the first quarter. I am also pleased to report that two of our smaller brands showed remarkable resiliency, Van Cleef & Arpels and Karl Lagerfeld achieved second quarter sales growth of 61.3% and 115.7%, respectively, generally relating to each brand’s expanding multi-scent collections.”
 
With regard to US based operations, Madar continued, “Most of the credit for the more than 20% increase in second quarter sales goes to the exceptional strength of Guess brand scents. We expect that the recent domestic debut of 1981 Los Angeles and upcoming launch of Seductive Noir will further enhance the brand’s fragrance franchise. The Abercrombie & Fitch brand also contributed to the increase in sales, helped by the exclusive Authentic duo launch in UK Duty Free stores in April followed by the global rollout in May. In addition, Hollister fragrances generated gains enhanced by the launch of the Wave limited edition duo, plus our first Festival brand extension, Festival Nite. In last year’s second quarter, the Anna Sui, Dunhill and Oscar de la Renta brands produced significant comparable quarter sales, making this year’s quarterly comparisons especially challenging. While Anna Sui and Oscar de la Renta are not far behind last year’s second quarter, Dunhill is expected to regain some of its lost momentum with the global launch of Century Blue later this year.”
 
On the subject of the company’s newest brands, Madar went on to say, “Our first direct to consumer, e-commerce initiative commences in September on Lily Aldridge’s website with her first scent Haven, to be followed in November with Summit and two more in the first half of next year. For Graff, we have a six-scent collection for women launching early next year at Harrod’s, which will have a six-month exclusive. After that, the global rollout will begin in only the most exclusive, upmarket retail outlets.”
 
2019 Guidance
Russell Greenberg, executive vice president and CFO of Inter Parfums Inc. noted, “We do not anticipate any sales of Kate Spade fragrance in 2019 and therefore, we continue to expect 2019 net sales to approximate $712 million resulting in net income attributable to Inter Parfums Inc. per diluted share of $1.88. Guidance assumes the dollar remains at current levels.”