Happi Staff11.09.20
Inter Parfums Inc. has reported results for the third quarter ended September 30, 2020. Net sales were $160.6 million, down 16.0% from $191.2 million. Through the first nine months of 2020, net sales declined 33.7% to $355.0 million from $535.7 million, in the same period of the prior year.
Jean Madar, chairman & CEO of Inter Parfums Inc. noted, “As compared to the preceding quarter, sales rallied across all of our markets, with the three largest, North America, Western Europe and Asia, achieving significant gains. As a result, when compared to the second quarter, third quarter net sales increased 224%; gross margin rose 630 basis points; our operating margin returned to a more normalized level of 19.5%; and once again, our bottom line was solidly profitable.”
Responding to the Pandemic
According to Madar, 2020 has been a highly productive year for the company, despite the hardships and disruptions caused by the Covid-19 pandemic. Inter Parfums added two new important luxury brands to its portfolio this year, MCM and Moncler, and made an equity investment in Divabox, the parent company of Origines-parfums. It also introduced new products and brand extensions, including Coach Dreams, L’Homme Rochas, Oscar de la Renta’s Bella Essence, and Abercrombie & Fitch Authentic Night.
Since the advent of the pandemic, cutting expenses wherever possible and appropriate has been a priority, says Russell Greenberg, executive vice president and CFO of Inter Parfums Inc.
“In response to the impact of the Covid-19 pandemic, most of our 2020 promotional programs, especially those for new product introductions, were postponed until 2021,” Greenberg explained. “In the third quarter, promotion and advertising represented 10.9% of net sales, as compared to 15.0% in last year’s third quarter. In dollars, that’s a savings of more than $11 million, bringing promotion and advertising included in S, G & A down to $17.6 million from $28.7 million in the third quarter of 2019.”
In October, Inter Parfums raised its 2020 net sales guidance to between $495 million and $500 million. The company will issue its initial 2021 guidance after the market closes on Tuesday, December 1, 2020.
Jean Madar, chairman & CEO of Inter Parfums Inc. noted, “As compared to the preceding quarter, sales rallied across all of our markets, with the three largest, North America, Western Europe and Asia, achieving significant gains. As a result, when compared to the second quarter, third quarter net sales increased 224%; gross margin rose 630 basis points; our operating margin returned to a more normalized level of 19.5%; and once again, our bottom line was solidly profitable.”
Responding to the Pandemic
According to Madar, 2020 has been a highly productive year for the company, despite the hardships and disruptions caused by the Covid-19 pandemic. Inter Parfums added two new important luxury brands to its portfolio this year, MCM and Moncler, and made an equity investment in Divabox, the parent company of Origines-parfums. It also introduced new products and brand extensions, including Coach Dreams, L’Homme Rochas, Oscar de la Renta’s Bella Essence, and Abercrombie & Fitch Authentic Night.
Since the advent of the pandemic, cutting expenses wherever possible and appropriate has been a priority, says Russell Greenberg, executive vice president and CFO of Inter Parfums Inc.
“In response to the impact of the Covid-19 pandemic, most of our 2020 promotional programs, especially those for new product introductions, were postponed until 2021,” Greenberg explained. “In the third quarter, promotion and advertising represented 10.9% of net sales, as compared to 15.0% in last year’s third quarter. In dollars, that’s a savings of more than $11 million, bringing promotion and advertising included in S, G & A down to $17.6 million from $28.7 million in the third quarter of 2019.”
In October, Inter Parfums raised its 2020 net sales guidance to between $495 million and $500 million. The company will issue its initial 2021 guidance after the market closes on Tuesday, December 1, 2020.
