Inter Parfums Reports Positive Q3

Inter Parfums Inc. has reported that for the three months ended September 30, 2019, net sales increased 7.9 percent to $191.2 million as compared to $177.2 million for the corresponding period of the prior year. At comparable foreign currency exchange rates, consolidated third quarter net sales increased 9.7 percent. Of note, the average dollar/euro exchange rate for the 2019 third quarter is 1.11 compared to 1.16 in the third quarter of 2018, and 1.12 and 1.19 for the nine months ended September 30, 2019 and 2018, respectively. Inter Parfums plans to issue results for the 2019 third quarter on or about November 5, 2019 and initial guidance for 2020 on November 20, 2019 after the close of the stock market.
 
Discussing the largest brands within European based operations, Jean Madar, chairman & CEO of Inter Parfums stated, “Montblanc turned in an extraordinary quarter with sales growth of 32.2 percent, attributable to both the excellent response to the brand’s newest scent, Montblanc Explorer, along with continued strong sales of the brand’s founding fragrance Montblanc Legend. For Jimmy Choo fragrances, the flankers rolled out at the end of 2018 and early 2019 contributed to solid gains of more than 10 percent, bolstered by the good start of the men's line, Jimmy Choo Urban Hero, launched in the third quarter. The 3.4 percent decline in Coach brand sales was primarily due to the high bar set in last year’s third quarter when brand sales rose 40.9 percent, relating in part to the debut of two very popular flankers, Coach Floral and Coach Platinum. Despite no major introductions, year-to-date Coach brand sales are slightly ahead of last year. After a strong second quarter due in part to the launch of A Girl in Capri, third quarter Lanvin brand sales declined by nearly 24 percent. Rochas turned in an impressive third quarter with brand sales up 8.8 percent, due in part to the winter debut of Mademoiselle Rochas Couture.”
 
With regard to US based operations, Madar continued, “Once again, Guess brand sales are responsible for most of the gains in third quarter and year-to-date sales with initial shipments of 1981 Los Angeles and Seductive Noir further building upon the brand’s fragrance franchise. Oscar de la Renta fragrances have also contributed to the top line growth this year, with the Bella Blanca pillar, including the successful flanker launch of Bella Rosa, driving sales. Also contributing to the nearly 29 percent increase in year-to-date sales were the Anna Sui, Abercrombie & Fitch and Hollister brands, with the new product launches and extensions introduced earlier in the year fortifying brand sales for each.”
 
On the subject of the company’s newest brands, Madar said, “We have finalized initial plans with respect to the Kate Spade brand. Through our majority owned subsidiary, Interparfums SA, we will be taking over distribution of the fragrance portfolio in April 2020 and our first new scent is scheduled for a fall 2020 debut with distribution concentrated in the US and Asia. For Graff, we have a six-scent collection for women launching early next year at Harrod’s with a six-month exclusive. After that, the global rollout will begin in exclusive retail outlets.”
 
The company expects 2019 net sales to approximate $712 million resulting in net income attributable to Inter Parfums Inc. per diluted share of approximately $1.88.