Inter Parfums sales increase 11.7%
New US-based prestige product distribution subsidiary spurs growth
Inter Parfums Inc has reported net sales of $133.4m in the first quarter of 2011, an increase of 11.7% on the prior year quarter. European sales grew 12.3% to $121.6m while US-based operations generated sales of $11.8m, an increase of 12.3% on the first quarter of 2010.
Jean Madar, chairman and ceo of Inter Parfums commented: “With respect to European-based operations, first quarter sales growth was primarily due to the 1 January, 2011 commencement of prestige product distribution in the US by our subsidiary Interparfums Luxury Brands.”
Additionally, Lanvin brands turned in a 35% increase in comparable quarter sales and the company profited from initial sales of the new Jimmy Choo scent. “The selective launch of the Jimmy Choo signature fragrance surpassed our expectations and the level of recorders, even in its limited distribution, even surprised us,” said Madar.
Regarding US based operations sales growth was due to increased international distribution of speciality retail products and new launches under the Gap and Banana Republic portfolio.
Meanwhile, net income increased a massive 94.8% to reach $12.8m as compared to £6.6m in the same period of 2010. Russell Greenberg, executive vp & cfo stated: “We now sell our prestige products in the US direct to retailers rather than through a third party distributor, which accounts for most of the gross margin improvement. Promotion included in selling, general and administrative expenses approximated $18.3m or 13.7% of net sales in the current first quarter, down from $19m or 15.9% of net sales in the comparable 2010 period. With planned promotion and advertising activities heavily weighted toward the second half of the year, those expenses in both dollars and as a percentage of net sales should be substantially higher in the second half of 2011.”