Interparfums predicts revenues of 500 million euros in 2020
Interparfums, the international fragrance company responsible for the perfume offerings of brands including Montblanc, Jimmy Choo and Coach, among others, presented its financial predictions for 2020 on Thursday, highlighting a target of 500 million euros ($554 million) in net sales. This represents an increase of 4.2% compared to 2019 – when annual sales are expected to total 480 million euros ($531 million) – but hints at a certain level of caution.
Indeed, although analysts had predicted growth of around 10%, Interparfums CEO Philippe Bénacin's appraisal is more measured. "The markets haven't been good for the last six months. For example, there is the situation in Hong Kong, which has an impact on the work of our Chinese partner, and even in South America, in Argentina and Brazil, the situation is complicated," he explained.
Interparfums' management, which, in any case, often revises up its guidance, has therefore chosen to play it safe with its outlook for the coming months. The top-performing brands in the company's portfolio, however, are not expected to change. As in 2019, Montblanc will continue to be the leader of the pack with flat sales of around 138 million euros ($152 million). This notable lack of growth can be attributed to an unfavorable basis of comparison, seeing as 2019 was marked by the launch of the brand's new Explorer fragrance, which has generated some 40 million euros ($44 million) in revenue so far this year.
In 2020, sales of Jimmy Choo fragrances are expected to see growth of 4% to around 107 million euros ($118 million), lifted by the lipstick and nail varnish launch planned for the first half of the year.
In third place, Coach is predicted to post sales of around 97 million euros ($107 million), an increase of 15%. The American brand's plans for 2020 include a new women's fragrance line called Coach Dreams.
Another piece of good news could come from American ready-to-wear brand Kate Spade, with whom Interparfums signed an 11-year global license in June. The first women's fragrance line concocted for the brand by Interparfums is set to launch in Summer 2020 and is expected to generate some 6 million euros ($7 million) when it is released.
Lanvin, on the other hand, is predicted to post another decline in sales. In 2019, revenues from the brand's fragrances fell 7.2% to 55 million euros ($61 million) and should slip to around 50 million euros ($55 million) in 2020. "Our objective with Lanvin is to maintain the existing lines. In order to begin a new story, we have to know what's going to happen with the couture house," explained Bénacin, who believes that this particular license hit its high point with the 64 and 60 million euros ($66 million, $71 million) it generated in revenues in 2014 and 2018, respectively.
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