Inter Parfums Expects Gains

Inter Parfums, Inc. released its initial 2019 guidance, which calls for net sales to rise 6% to $705 million.

According to Jean Madar, chairman and chief executive officer, the increase in projected net sales reflects contributions made by fragrance launches, brand extensions and the staying power of many well-established best sellers.

“With regard to our largest brands within our European operations, we will unveil Montblanc Explorer, a new men’s scent, in all geographic markets early in the new year,” said Madar. “In addition, Jimmy Choo will add a new scent for men as the year draws to a close in the fall. Two new scents for women debut next year, A Girl in Capri for Lanvin in the summer and Floral Blush, a Coach flanker, in the fall. In addition, brand extensions, additions to multi-scent collections and limited edition scents are coming to market for our other brands including, Rochas, Boucheron, Van Cleef & Arpels, S.T. Dupont, Repetto and Paul Smith, throughout the year.”

With regard to US operations, Madar pointed out that Guess fragrance sales will be recorded for all of 2019 compared to about seven months in 2018. For that brand, the company plans to roll out two extensions, one each for the 1981 and Seductive pillars. Inter Parfums will also animate several of its newer fragrance families with flankers, including one or more each for Bella Blanca by Oscar de la Renta, Fantasia for Anna Sui, Century by Dunhill and Wave and Festival Vibes for Hollister.

Also coming to market is Authentic, an entirely new fragrance duo for Abercrombie & Fitch, planned for a spring introduction, and a multi-scent men’s collection for Dunhill in the second quarter. Late in the year, two business initiatives will debut. Inter Parfums will unveil its first deluxe fragrance collection for Graff, and offer some new exclusive amenities to the most prestigious hotels and travel venues.

Also this year, the company will enter into direct-to-consumer e-commerce with a fragrance collection created with supermodel Lily Aldridge, its first initiative between the company’s Interstellar Brands subsidiary and IMG models.

“Everything points to 2019 being a highly ambitious and productive year, resulting in record sales and earnings,” Madar concluded.

According to Russell Greenberg, executive vice president and chief financial officer of Inter Parfums, initial 2019 sales guidance implies a 6% year-over-year increase based upon 2018 net sales guidance of $665 million. The projected strengthening of the dollar masks what would have been closer to a 9% increase in net sales in constant dollars.

“While a strong US dollar has a negative impact on our net sales, it favorably impacts gross margin, because over 45% of net sales of our European operations are denominated in US dollars, while almost all associated costs are incurred in euro,” explained Greenberg.