For the full year, net sales rose 5.6% to a record $713.5 million from $675.6 million in 2018. At comparable foreign currency exchange rates, consolidated 2019 net sales increased 7.8%. Of note, the average dollar/euro exchange rate for the 2019 fourth quarter is 1.11 compared to 1.14 in the fourth quarter of 2018. For the full years ended December 31, 2019 and 2018 the average dollar/euro exchange rates were 1.12 and 1.18, respectively.
Inter Parfums plans to issue results for the 2019 fourth quarter and full year on or about Monday, March 2, 2020.
Jean Madar, chairman & CEO of Inter Parfums stated, “2019 was a record year for sales, achieved despite the depressing effect of a strong dollar and the small number of major launches compared to prior years. We also count among of our other major accomplishments the addition of two new important names, Kate Spade New York and MCM, as well as the extension of our license for the Oscar de la Renta brand.”
European-Based Product Sales
The company’s largest brand, Montblanc, grew full year sales by close to 22.7% with the excellent performance of the new Montblanc Explorer scent as well as the continued strength of the brand’s Legend fragrance family. In constant dollars, Jimmy Choo brand sales were up slightly, however, due to the strengthening of the dollar, brand sales for our its largest brand, were down nominally in actual dollars. Coach brand sales were also down slightly in 2019 in actual dollars but ahead of 2018 in constant dollars; of note, Coach brand sales in 2018 were 73.3% ahead of the prior year. Two of Inter Parfums’ mid-sized brands, Karl Lagerfeld and Van Cleef & Arpels, achieved year-over-year sales growth of 5.0% and 6.8%, respectively.
According to Madar, Guess fragrances had a strong year due to the addition of two brand extensions, 1981 Los Angeles and Seductive Noir, the continued popularity of legacy scents and the success of Inter Parfums’ international distribution and marketing programs. Also contributing to the more than 24% top line growth by US operations were Abercrombie & Fitch and Hollister, both of which achieved significant sales growth. Oscar de la Renta fragrance sales rose slightly, supported by legacy scents and the growing Bella fragrance family.
Looking Forward to 2020
“2020 has a more robust launch schedule on both sides of the Atlantic. For US operations, the most important launch will be a new blockbuster scent for women under the Guess banner unveiling this spring,” added Madar. “A new fragrance duo, Canyon Escape, for Hollister is scheduled for a spring launch. We look to Sky by Anna Sui to reinvigorate brand sales when it debuts in the fall. Our first fragrance collection under the Graff label debuts in Harrod’s for a six-month exclusive starting in the spring, followed by select international luxury distribution. For European operations, our new Coach scent for women is coming to market later this winter. We have new women’s scents for the Montblanc brand debuting in the spring, for Kate Spade New York our first scent is coming to market this summer, and one for Jimmy Choo is unveiling in the fall. In addition, as always, we will strengthen fragrance families with brand extensions as well as limited edition and holiday programs.”
The company expects 2019 diluted net income per share to come in at approximately $1.90. Although it is mindful of the potential impact of the business uncertainties facing it including the situation in Hong Kong, Brexit, tariffs, currency fluctuation, and natural disasters, for 2020 Inter Parfums still expects record net sales of approximately $742 million, resulting in net income of approximately $2.00 per diluted share. Guidance assumes that the average dollar/euro average exchange rate remains at current levels.