10.22.15
Inter Parfums' Q3 sales increased 3.5% to $138.9 million, . At comparable foreign currency exchange rates, consolidated third quarter net sales increased 11.4%. According to Jean Madar, chairman and CEO, the 16% depreciation of the euro versus the dollar from last year’s third quarter turned the 27% local currency growth of product sales for Inter Parfums' European based operations into a much more modest increase of 6.5%.
Madar said that the currency impact was most apparent with its three largest brands, led by Jimmy Choo, where brand sales increased 46% in local currency, but only increased 23% in dollars. The excellent performance in Jimmy Choo fragrance sales reflects robust gains from the Jimmy Choo Man line, particularly in the US, and the recent and promising launch of the Jimmy Choo Illicit line, the brand's third women's fragrance initiative.
“As expected, the Montblanc sales comparison was more favorable in the third quarter than in the first half, with brand sales up 25% in local currency and 5% in dollars, driven by the successes of the Legend and Emblem lines and initial sales for the Lady Emblem line," said Madar. "Lanvin brand sales rebounded in the third quarter, up 7% in local currency but down 10% in dollars. Paul Smith fragrances benefited from the launch of the Essential line, the brand's new men's fragrance initiative, resulting in a more than doubling of brand sales from last year’s third quarter.”
Mader added that despite the exceptionally strong performance of Dunhill fragrances which had a nearly 40% increase in brand sales, US-based operations posted a 6.5% decline in comparable quarter sales. Dunhill became Inter Parfums' largest brand within its US operations. Oscar de la Renta brand sales were down by 6% for the quarter, but up nearly 35% year-to-date.
"We anticipate the growth trend to resume for Oscar de la Renta brand sales in the fourth quarter of 2015," concluded Madar. "Sales of Anna Sui fragrances, which were down nearly 19% from last year’s third quarter, continue to be depressed by negative market conditions in China.”
Madar said that the currency impact was most apparent with its three largest brands, led by Jimmy Choo, where brand sales increased 46% in local currency, but only increased 23% in dollars. The excellent performance in Jimmy Choo fragrance sales reflects robust gains from the Jimmy Choo Man line, particularly in the US, and the recent and promising launch of the Jimmy Choo Illicit line, the brand's third women's fragrance initiative.
“As expected, the Montblanc sales comparison was more favorable in the third quarter than in the first half, with brand sales up 25% in local currency and 5% in dollars, driven by the successes of the Legend and Emblem lines and initial sales for the Lady Emblem line," said Madar. "Lanvin brand sales rebounded in the third quarter, up 7% in local currency but down 10% in dollars. Paul Smith fragrances benefited from the launch of the Essential line, the brand's new men's fragrance initiative, resulting in a more than doubling of brand sales from last year’s third quarter.”
Mader added that despite the exceptionally strong performance of Dunhill fragrances which had a nearly 40% increase in brand sales, US-based operations posted a 6.5% decline in comparable quarter sales. Dunhill became Inter Parfums' largest brand within its US operations. Oscar de la Renta brand sales were down by 6% for the quarter, but up nearly 35% year-to-date.
"We anticipate the growth trend to resume for Oscar de la Renta brand sales in the fourth quarter of 2015," concluded Madar. "Sales of Anna Sui fragrances, which were down nearly 19% from last year’s third quarter, continue to be depressed by negative market conditions in China.”