Inter Parfums profits climb
Company made a one-time gain following the termination of the Burberry licence
Inter Parfums has made a one-time net income gain in its fourth quarter following the termination of the Burberry licence. Gain on termination of the Burberry licence came to $198.8m, bringing the company’s net income to $99.6m and diluted earnings per share to $3.24.
Excluding the gain on the termination of the licence, net income came to $6.6m compared to $4.1m in the prior-year quarter. Net sales fell 6.4% to $176.9m from $189, while European-based operations generated sales of $152.4m, down 10.1% from $169.6m. Sales by US-based operations on the other hand, reached $24.5m, up 25.9% from $19.5m.
Commenting on the results, Jean Madar, Chairman & CEO of Inter Parfums, said: “The past year was highly eventful and productive for our company. In addition to achieving record sales and earnings in the absence of new major product launches, we added two new license agreements with iconic luxury fashion houses, Karl Lagerfeld and Alfred Dunhill. The addition of these brands is representative of our growth strategy as we move into the next phase of our company’s evolution.”
Madar continued: “Our 2012 sales benefitted from strong performances by several of our prestige brands. Notably, Montblanc sales increased 40%, driven by continued momentum of the extremely popular Legend men’s line, our best-selling fragrance for men across our entire prestige portfolio. Jimmy Choo continued to build upon the success of its signature scent with brand sales increasing 26% for the year.”
Looking ahead, Inter Parfums expects new product launches from its core brands, including Jimmy Choo, Lanvin and bebe to drive growth.
