Ending The Year on a High Note

It was a great quarter, and year, for Inter Parfums, Inc. For the three months ended Dec. 31, 2016, net sales were $134.8 million, up 13.9% from $118.3 million for the final quarter of 2015. At comparable foreign currency exchange rates, consolidated fourth quarter net sales increased 15.3%. For the full year, net sales rose 11.2% to $521.1 million from $468.5 million in 2015. At comparable foreign currency exchange rates, consolidated 2016 net sales increased 12.1%, the company said.

“The final quarter of 2016 was better than expected, resulting in full year sales of $521.1 million, exceeding the high end of our published guidance,” Jean Madar, chairman and CEO, said yesterday upon release of figures. “With regard to European based operations, the star performer was Montblanc, which achieved a 30% increase in fourth quarter sales and a 25% increase in full year sales driven by the continued success of the Montblanc Legend fragrance family. Our newer brands were also contributors to the increase in net sales. Coach brand sales, which commenced in the second half of 2016, were well ahead of expectations, with $9.1 million in incremental sales for the quarter and $23.1 million for the year. Rochas brand sales rose 16% to $9.9 million in the final quarter of 2016, and contributed $32.3 million to full year sales; we began consolidating the brand’s sales when we acquired Rochas in June 2015.”

Madar said that the absence of a major new product launch at Jimmy Choo impacted the brands’ performance as sales declined 9% for the quarter and 2% for the year.  He noted, “the bar was set unusually high in 2015 when brand sales were up 18% compared to the preceding year.”

Also, Lanvin brand sales declined 13% for both the fourth quarter and year, “but the rate of decline has slowed somewhat with the launch of Modern Princess in France and stronger sales in the Russian market,” he said.

On the subject of U.S. based operations, Madar said that “far and away, the major contributors to the over 17% increase in sales were the launch of First Instinct, our men’s scent for Abercrombie & Fitch and Wave, our fragrance duo for Hollister. The Dunhill brand was also a strong performer for the year due in great part to the continued success of the Iconfragrance family.”