Inter Parfums Posts Full Year, Q4 Report

Fragrance is still a rising category but some companies are seeing the effects of international currency translation. For the fourth quarter, net sales declined 5.4% to $118.3 million at Inter Parfums. European based operations net sales fell 5.3% to $88.6 million, while US sales slipped 5.8% to $29.7 million. For the full year, 2015 net sales declined 6.2% to $468.5 million.
 
Jean Madar, chairman & CEO of Inter Parfums, Inc. noted, “Throughout 2015, our reported net sales were adversely affected by the strong dollar. In 2015, the average US dollar/euro exchange rate was 1.11 as compared to 1.33 in 2014. The sales impact was especially apparent for the two largest brands within our European operations. In 2015, Jimmy Choo fragrance sales were $92.4 million, which represents an 18% year-over-year increase in dollars, but in local currency the increase was a far more dramatic 41%.
 
“Similarly, Montblanc brand sales increased 6% in local currency in 2015, but declined 12% in dollars to just under $100 million. With regard to U.S. operations, our two largest brands also performed well. Dunhill brand sales, which are exclusively men’s fragrances, were up 37% for the year reaching $22.3 million, making it the bestselling brand in that group, followed by Oscar de la Renta, with 2015 brand sales of $18.6 million, a 17% gain over 2014 brand sales.”
 
He continued, “Irrespective of the strong US dollar environment continuing thus far in 2016, we remain confident in our near and longer term prospects which we are supporting with investment in advertising and promotion across our portfolio of brands, through further brand development and by building upon the strength of our worldwide distribution network. For 2016, we have several firsts coming to market, including our first ever men’s scent for the Abercrombie & Fitch brand and a guy and gal fragrance duo for its Hollister brand, both timed for mid-year. We will also debut a women’s scent for Coach this summer.
 
“Our first new men’s scent for the Oscar de la Renta brand, Oscar Gentleman, will be introduced in late summer. In addition, we have entirely new fragrance pillars for Lanvin and Van Cleef & Arpels among our new market entrants this year, as well as a large number of brand extensions, flankers and select distribution products.”