Inter Parfums has reported its results for the second quarter of 2014, which ended June 30th. Net sales of ongoing brands (excluding Burberry brand sales, as the firms parted in 2013), increased 22.1% to $118m from $97m, while net income attributable to Inter Parfums increased to $6m from $4m in 2013.
Jean Madar, Chairman and CEO of Inter Parfums attributed this growth to “new product launches as well as the continuing success of several established scents,” such as Montblanc's Emblem and Legend fragrances. Montblanc brand sales were up 88% this quarter.
Europe-based operations generated ongoing brand sales of of $95m, an increase of 31.2% on last year’s $72m in the same period. Of this, $4m in incremental sales can be attributed to the debut of the Karl Lagerfeld fragrance duo for the quarter.
In addition, the company highlighted sales of existing collections by S.T. Dupont and Paul Smith, the Repetto signature scent, and Lanvin's Eclat d'Arpège, which exceeded those of last year's second quarter. Together, it said, these gains more than offset the 6% comparable quarter decline in Jimmy Choo brand sales, which in Q2 2013 rose more than 40%, driven by the launch of Flash. The company is looking forward to the launch of Jimmy Choo Man this autumn as a potential catalyst for growth in this brand's sales.
US-based operations generated sales of $24m for Q2 2014, compared to $25m last year during the same period, a “challenging comparison” according to the company, as Q2 2013 was boosted by a licensing agreement between Inter Parfums and Alfred Dunhill Fragrances in April of that year. The company expects brand momentum to build with the launch of its new Dunhill scent, Icon, later this year, with a wider roll out in 2015.
The firm saw first half sales growth across nearly all geographic markets. Consolidated sales of ongoing brands in Western Europe and North America–Inter Parfum’s two largest markets–increased by 28% and 19%, respectively. Asian sales were flat through the first half, but sales in the Middle East were up 30%, and in Central and South America were almost 52% ahead of the first half in 2013. Eastern Europe was the only market that experienced a decline through the first half of 2014, a fall that the firm ascribed to conditions–economic and otherwise–in Russia.
Speaking on 2014 guidance, Russell Greenberg, Executive Vice President and CFO of Inter Parfums, stated that the company expects approximate net sales of “$495m, or 15% ahead of 2013 net sales of ongoing brands. attributable to Inter Parfums should be in the range of $0.93 to $0.95 per diluted share. Guidance assumes the dollar remains at current levels."
