Inter Parfums Reports Q1 Sales

On April 22, Inter Parfums Inc. reported that for the three months ended March 31, 2020, net sales declined 18.7% to $144.8 million from $178.2 million in the first quarter of 2019. Inter Parfums plans to issue results for the 2020 first quarter on or about May 11, 2020.
 
Coach and Guess, two of Inter Parfums’ largest brands, experienced strong growth, but comparable quarter sales declined for its other major brands following the closure of virtually all points of sale throughout the world due to the global COVID-19 pandemic.
 
In an attempt to minimize the impact of reduced sales on the company’s bottom line, it has postponed the launch of several programs originally scheduled for this year until 2021 and moved related advertising and promotion expenses to 2021 as well. That includes Inter Parfums’ planned launches for the Kate Spade New York, Jimmy Choo, Anna Sui and Guess brands.
 
“Our solid financial situation and highly adaptable business model should allow us to endure this crisis until we can once again grow our business. Having entered 2020 with $253 million in cash, cash equivalents and short-term investments, and only $10.7 million of long-term debt, we have significant resources to meet our present and future obligations,” commented Jean Madar, chairman and CEO of Inter Parfums. “We are now keenly focused on safeguarding our relationships with our partners, in particular our suppliers and customers. We are prepared for a rapid rebound as soon as this is possible, probably in stages until we are back in business with the 120 countries where our products are sold. More recently, we have seen a few encouraging signs of recovery in certain countries in Asia; however, much of our efforts are directed and mobilized on 2021.”
 
Due to uncertainties associated with the global coronavirus crisis, the company is not prepared to issue 2020 full year guidance at this time.