Inter Parfums Net Falls 6% NEW YORK — Despite strong sales, Inter Parfums Inc. reported a dip in earnings for the second quarter ended June 30 as the company faced higher royalty rates.
Net earnings were down 6 percent to $3.2 million, or 16 cents per diluted share, from $3.4 million, or 17 cents, a year prior, while sales increased 28 percent, excluding the benefits of currency exchange, to $61.3 million from $46.7 million.
Net earnings for the first half were also down, to $7.6 million, or 37 cents per share, from $8.2 million, or 40 cents. Net sales for the first half were up 26 percent to $132.4 million from $105.1 million.
The drop in profitability for the second quarter "is due to the impact of the higher Burberry royalty rate ... and marketing expenses that began in January of this year," said Russell Greenberg, executive vice president and chief financial officer, on a conference call.
The royalties for Burberry more than doubled in the second quarter, to $7.1 million, while advertising was up $2.7 million from last year. The fragrance line is still one of Inter Parfums' most successful brands, and while its costs dragged down the company's earnings, it still accounted for most of the big increase in net sales.
Overall, prestige product sales grew 44 percent in the second quarter, while mass sales declined 19 percent.
Executives on the conference call shied away from providing too many details on the company's newest venture with Gap and Banana Republic, but did say it budgeted between $1.5 million and $2.5 million in start-up expenses for the second half of the year.
Inter Parfums revised its 2005 sales and earning guidance to account for these costs and for currency translation. The 2005 year-end sales were adjusted down to $274 million from $280 million, and earnings are expected to come in at $14.6 million, or 71 cents per share.
Guess Heats Up Parlux Sales NEW YORK — On the heels of its successful launch of the Guess for Women scent and the continued rollout of Paris Hilton fragrances, Parlux Fragrances Inc. reported strong top- and bottom-line results for the first quarter.For the period ended June 30, net income rose 72.7 percent to $3.8 million, or 36 cents a diluted share, from $2.2 million, or 21 cents a diluted share, in the same period last year as net sales soared 46.9 percent to $33.8 million from $23 million.
The company met analyst estimates of 36 cents a share this quarter, and expects it will meet its full-year guidance of $190 million to $210 million in sales and $2 to $2.20 in earnings per share.
Though Parlux manufactures and distributes several prestige fragrances in addition to Paris Hilton and Guess, such as Perry Ellis, XOXO, Ocean Pacific, Maria Sharapova, Andy Roddick, babyGund and Fred Hayman Beverly Hills, those two remain the standouts. Guess, in fact, has achieved a top-10 ranking at all stores where it has launched to date, including the number-one spot at Robinsons-May, Foley's and Macy's Florida, according to Parlux. The product line will be in more than 2,000 department stores by the end of September, and in all 190 Guess freestanding stores.
Parlux expects to roll out a Guess men's fragrance in spring 2006.
Tupperware Boosts Beauty Business NEW YORK — Tupperware believes its $557 million cash acquisition of Sara Lee's direct-selling business will complement its BeautiControl cosmetics and personal care subsidiary. That's because 90 percent of Sara Lee direct selling's $470 million in revenues is generated in Latin America and Asia, as compared with BeautiControl's $118 million in sales volume, which is largely focused in North America.
The two firms reached an agreement Wednesday for Tupperware to buy the Sara Lee direct-selling business, an operation that includes 900,000 independent sales consultants who market cosmetics, skin care items, fragrances, toiletries and clothing in 18 countries. Simon Hemus, president of Sara Lee direct selling, will join Tupperware and continue heading the unit. The companies expect the transaction to close during the fourth quarter.
Tupperware projects that the addition of Sara Lee direct selling will increase the share of its total revenues generated by beauty and personal care products to about 35 percent. Beauty generates 12 percent of Tupperware's $1.2 billion in total sales today.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)