Inter Parfums reports solid third quarter and nine month results
Inter Parfums, Inc. announced Monday very solid numbers for its third quarter of fiscal 2015 ended September 30, 2015. The company reported sales increases for six out of its eight brands.
Net sales increased 3.5% to $138.9 million, compared to $134.2 million in Q3 2014. At comparable foreign exchange rates, net sales increased 11.4%. Sales by European based operations increased 6.5% to $110.1 million from $103.4 million, and US based operations decreased 6.5% to $28.8 million from $30.8 million.
On European based operations, Jean Madar, Chairman and CEO of Inter Parfums, Inc. noted that for the first nine months of 2015, net sales in local currency for the company's two largest brands, Montblanc and Jimmy Choo, were up 6% and 51%, respectively, driven by a combination of new product introductions and the staying power of more established scents.
Lanvin, the third of the top three brands, had a 1% decline in local currency brand sales, which are "particularly sensitive to the state of Russia’s economy". Among the mid-sized brands, good performances were seen by the Boucheron and Paul Smith fragrances, where local currency sales were up 26% and 18%, respectively, fueled by new product launches.
By contrast, last year’s first half launch and rollout of the Karl Lagerfeld fragrance duo made for a challenging comparison as year-to-date sales were down 45% in local currency.
Madar added that the 3.3% increase in net sales for US based operations reflects 50% and 35% gains by Dunhill and Oscar de la Renta fragrances compared to the first nine months of 2014. The increases were offset by declines in other brands, most notably Anna Sui, which dropped 30%.
Mr. Madar closed by saying, “The licensing agreements signed over the past twelve months with Abercrombie & Fitch, Hollister and Coach, and our acquisition of the Rochas brand, are all important catalysts for future growth. As we previously announced, we plan to report our initial 2016 sales and earnings guidance next week on November 17th.”
For the remainder of 2015, Russell Greenberg, Executive Vice President and CFO of Inter Parfums, Inc., said that the company expects net sales to be in the range of $460 million and $470 million. “Our current guidance factors in negative market conditions in China, Russia and Brazil that have prevailed throughout this year. As always, our guidance assumes the dollar remains at current levels,” Greenberg added.
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