10.27.21
Net sales for Inter Parfums, Inc., rose to a record $262.7 million for the three months ended on Sept. 30, 2021, company officials at the fine fragrance leader recently reported.
The increase represents a 64% increase from the third quarter of 2020 and 37% ahead of the third quarter of 2019.
“We are once again increasing our 2021 guidance due to better-than-expected third quarter sales, coupled with modest initial Ferragamo fragrance sales during this transitional period,” said Russell Greenberg, executive vice president and chief financial officer at the company. “We now look for 2021 sales to come in at a record $810 million, resulting in net income of $75 million or $2.35 per diluted share. Our previous guidance called for net sales of $750 million and diluted net income per share of $1.95. Based upon year-to-date sales, we are taking a conservative approach to fourth quarter sales, which is overwhelmingly due to bottlenecks in the supply chain, rather than lack of demand.”
“Our third quarter, historically our strongest, set a record, said Jean Madar, chairman and CEO of Inter Parfums, Inc. “As compared to 2019’s third quarter, our largest brands outperformed our best expectations.”
Coach led sales at 98%, Jimmy Choo followed at 40%, Lanvin at 37%, and Guess and Montblanc at 27% and 26%, respectively.
The increases, Madar said, were attributed to established fragrance pillars, brand extensions and the rollout of newer scents, including “I Want Choo” for Jimmy Choo and Bella Vita for Guess.
Kate Spade and MCM also contributed to the top line growth, with new fragrance debuts this year.
"We are similarly gratified by the meaningful upturn in sales by most of our mid-sized brands, as compared to the third quarters of the preceding two years,” noted Madar. “With the recent addition of Ferragamo fragrances and the forthcoming addition of Donna Karan and DKNY fragrances next summer, we look forward to accelerating our sales growth with expectations of attaining $1 billion in net sales within two to three years.”
"We are similarly gratified by the meaningful upturn in sales by most of our mid-sized brands, as compared to the third quarters of the preceding two years,” noted Madar. “With the recent addition of Ferragamo fragrances and the forthcoming addition of Donna Karan and DKNY fragrances next summer, we look forward to accelerating our sales growth with expectations of attaining $1 billion in net sales within two to three years.”
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Enriching Inter Parfums, Inc.’s portfolio with other compatible brands is a top priority for the manufacturer, particularly overseas in Italy where its newly-established business has what Madar calls a “broad bench of operational experience in all relevant functions.” These encompass product development, sourcing, manufacturing, inventory management, packaging, marketing, and distribution.
Enriching Inter Parfums, Inc.’s portfolio with other compatible brands is a top priority for the manufacturer, particularly overseas in Italy where its newly-established business has what Madar calls a “broad bench of operational experience in all relevant functions.” These encompass product development, sourcing, manufacturing, inventory management, packaging, marketing, and distribution.
The record sales, said Madar, were achieved despite the near absence of travel retail business and major supply chain disruptions affecting the procurement of components, the ability to transport good and related cost increases.
“These disruptions have continued into the fourth quarter at a time when demand for our product lines has never been stronger or more sustained,” said Madar. “We have been addressing this issue since the beginning of the year, by ordering well in advance of need and in larger quantities.”
Supply chain bottlenecks are expected to lift early next year.