Inter Parfums’ earnings rise 80% in peak of pandemic

The figures are the fragrance owner’s best performing Q4 results in terms of sales

Inter Parfums, the licence holder of Jimmy Choo, Paul Smith and Kate Spade fragrances, has reported an 80% increase in earnings during the peak of the pandemic.

The Q4 results, for the three months ended 31 December, show operating income rose 115% to US$26.5m from $12.3m in the same period in 2019.

Meanwhile, net sales in Europe and the US were both up more than 8%; the company’s strongest fourth quarter results on record.

Despite no new launches during the three months, the company’s largest European brands Montblanc, Jimmy Choo and Coach achieved comparable sales growth of 9.8%, 13.4% and 18% respectively, according to Jean Madar, Inter Parfums’ Chairman and CEO.

He added: “Throughout the past year, the Covid-19 pandemic and its repercussions broadly and negatively impacted sales in all regions, with the steepest year-over-year sales declines in two of our smaller markets, the Middle East and Eastern Europe, down 35.5% and 40%, respectively.

“Our two largest markets, North American and Western Europe, had far more modest sales declines of 17.8% and 20.7%, respectively.

“Much of the 28.2% sales decline in Asia was attributable to the dramatic reduction in air travel and corresponding impact on the travel retail business.”

To that end, for the whole year, Inter Parfums’ net sales declined almost 25% compared with 2019, while net income nosedived 36.6%.

However, as a result of its impressive Q4 sales uptick, Inter Parfums has raised its 2021 guidance to be in the range of $1.40 and $1.45 as it prepares for a flurry of product launches throughout the year.

“In the three months since we provided initial 2021 guidance, we’ve gained greater visibility as to how the year will unfold, thanks to an influx of orders for established brands, the addition of Kate Spade New York and MCM brand sales, and in general favourable indications from our distribution network,” said Inter Parfums’ VP and CFO Russell Greenberg.

The group has also reinstated its quarterly cash dividend, which was suspended to help weather the storm of the pandemic.

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