Q3 Sales Rise 6% at Inter Parfums

Inter Parfums, Inc. reported results for the third quarter ended Sept. 30, 2014. Net sales increased 6.0% to $134.2 million. European-based operations generated a sales rise of 5.7% to $103.4 million, while US-based operations increased 6.9% to $30.8 million. Operating income increased 28% to $18.7 million.
 
Jean Madar, chairman & CEO of Inter Parfums, commented, “New product launches and the continued popularity of many of our established scents produced the 6.0% increase in third quarter sales, especially our three largest. As we reported last month, the successful launch of Jimmy Choo Man and the continued strength of the brand’s signature women’s scent drove the 23% increase in Jimmy Choo brand sales. Montblanc brand sales rose 10% for the quarter and 40% through the first nine months spurred by the rollout of the new men’s line, Emblem, and the staying power of the brand’s Legend fragrances.
 
“After a slow start in the first half, Lanvin brand sales increased 9% with the broader distribution of Lanvin Me L’Eau and the perennially strong performance by the brand favorite, Éclat d’Arpège. The introduction of our first Karl Lagerfeld fragrances for men and women added $3.7 million in incremental third quarter sales and $20.9 million for the first nine months.”
 
Madar further noted, “Our US-based operations performed well during the third quarter, posting a 7% increase in sales. It is worth noting that the more recent addition of prestige names, including Agent Provocateur, Dunhill and Oscar de la Renta, has been an important sales driver.”
 
Discussing the more than 14% increase in year-to-date sales of ongoing brands (excluding Burberry brand sales), Mr. Madar stated, “We have seen strength in our business in nearly all geographic markets this year. Net sales of ongoing brands in Western Europe and North America, our two largest markets, were up 17% and 13%, respectively. Sales in Central and South America came in nearly 48% ahead and in the Middle East, they were up 20%. While Asian sales improved modestly through the first three quarters, Eastern Europe, which represents a small portion of our business, was the only down market for the first nine months of this year, primarily reflecting a difficult Russian market and its depreciating currency.”
 
Madar concluded by saying, “In the fourth quarter, we will have a sneak preview of our first Shanghai Tang fragrance collection in the Hong Kong namesake store followed by a broader rollout in 2015. Also next year, we have men’s scents launching for Dunhill, Lanvin and Balmain and women’s scents for Montblanc, Van Cleef & Arpels, and Oscar de la Renta, plus a men’s and women’s fragrance duo for Boucheron. While growing our existing business, we are diligently, judiciously and methodically seeking out new brands and related opportunities that could accelerate our growth rate.”
 
2014 guidance for net sales are expected to reach $495 million.