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.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye