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Inter Parfums Reports Q4, Full Year Results

Strength of dollar impacted sales growth, says CEO Madar.

For the three months ended December 31, 2015, Inter Pafrums, Inc. net sales were $118.2 million, down 5.5% from $125.1 million for the final quarter of 2014. At comparable foreign currency exchange rates, consolidated fourth quarter net sales increased 1.0%. For the full year, net sales dropped 6.2% to $468.4 million. At comparable foreign currency exchange rates, consolidated 2015 net sales increased 1.5%.
 “As was the case for the first nine months of 2015, the strength of the US dollar versus the euro continued to impact the sales growth achieved in the final quarter of the year,” said Jean Madar, chairman and CEO of Inter Parfums. In the 2015 fourth quarter, Montblanc brand sales were up 4% in local currency but down 9% in dollars, while Jimmy Choo brand sales rose 16% in local currency, but were up only 1% in dollars. For the full year, Jimmy Choo fragrances represented our fastest growing brand, with sales up 18% in dollars and 41% local currency, while Montblanc remained our largest selling brand.”
According to Madar, the “ongoing success of Jimmy Choo Man and the launch of Jimmy Choo Illicit, our third women's fragrance under that label, were the principal drivers for brand growth. For the fourth quarter and year as a whole, Montblanc brand sales benefited from both established scents, such as Legend and Emblem along with initial sales for the new Lady Emblem line. While the Montblanc growth rate slowed somewhat in 2015, it follows on the exceptional 2012 through 2014 year-over-year growth rate in local currency of 51%, 35% and 33%, respectively.”
Madar noted that the “excellent market response to Boucheron Quatre enhanced fourth quarter and full year sales as did the contribution by Rochas, which we acquired in May 2015.”
He added, “For the full year, sales for our European based operations were ahead across most regions. Our three largest markets, North America, Western Europe and Asia turned in local currency sales growth of 25%, 10% and 3%, and we also achieved top line growth in smaller markets such as Middle East and Eastern Europe. Not surprisingly, with the economic situation in Brazil, sales in South America were down sharply in 2015.”
On the subject of U.S. based operations, Madar also noted, “Dunhill brand sales were up 9% in the fourth quarter and 37% for the year as a whole, making that brand our largest and fastest growing in this group, with Dunhill Icon and related brand extensions driving sales growth. With the launch of Extraordinary, Oscar de la Renta fragrances also turned in a good performance with brand sales up 17% year-over-year as did Agent Provocateur fragrances with brand sales up nearly 6% compared to 2014. While Anna Sui brand sales were down 23% compared to 2014 primarily owing to the slowdown in the Chinese economy, where the brand is especially popular, the decline in the fourth quarter slowed to 4.4%.
Russell Greenberg, EVP and CFO stated, “With net sales coming in on the high end of our guidance, we continue to expect 2015 net income attributable to Inter Parfums, Inc. to be in our projected range of between $0.95 and $1.00. Likewise, we are affirming our current guidance for 2016 which calls for net sales in the range of $500 million to $510 million and net income attributable to Inter Parfums, Inc. of between $1.05 and $1.10 per diluted share. Our guidance continues to factor in the negative market conditions prevailing in China, Russia and Brazil and assumes the dollar remains at current levels.”

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