Sales Jump 11% at Inter Parfums

Inter Parfums, Inc. posted an 11.7% rise in net sales to $133.4 million for the first quarter of 2011.

“The new year started on a strong note,” stated Jean Madar, chairman and CEO of Inter Parfums. Discussing European-based operations, he commented, “First quarter sales growth was due to a number of factors, including the Jan. 1, 2011 commencement of prestige product distribution in the U.S. by our subsidiary, Interparfums Luxury Brands. Taking over U.S. distribution contributed to the 35% increase in first quarter North American prestige product sales in local currency. Other markets that were especially strong during the period include South America and Eastern Europe, where comparable quarter sales in local currency were up 97% and 37%, respectively.”

Madar continued, “The Jimmy Choo signature fragrance debuted with limited distribution in the first quarter. With strong demand on order renewals plus broader distribution anticipated in the second half, we are increasing our production forecast for the year. Also contributing to the top line growth were Lanvin brand sales, which, in local currency, were 35% ahead of last year’s first quarter. Based upon sales of Montblanc’s historic lines and the launch of Legend for men, brand sales are also running well ahead of budget. In local currency, comparable quarter Burberry brand sales declined a modest 8%, in line with expectations, as last year’s first quarter benefited from the worldwide launch of Burberry Sport. Similarly in local currency, first quarter Van Cleef & Arpels sales were 19% below those of last year’s first quarter which included the launch of Oriens.”

Discussing U.S.-based operations, Madar pointed out, “Following the 16% sales growth achieved in 2010, sales continued to rise in 2011, up 6.5% in the current first quarter, owing to increased international distribution of specialty retail products and new product launches for the Gap and Banana Republic brands. Most of the new product introductions, including the debut products for Betsey Johnson and Nine West, are timed for the second half.

Russell Greenberg, executive vice president and chief financial officer, stated, “Based upon strong first quarter sales, changes in foreign currency exchange rates and our expectations for the balance of the year, we are raising our 2011 guidance. We currently expect net sales of approximately $550 million resulting in net income attributable to Inter Parfums, Inc. of approximately $32.5 million.”

In addition, on April 26, the company renewed its license agreement with S.T. Dupont for the creation, development and distribution of fragrance lines until Dec. 31, 2016 on mutually favorable terms and conditions.