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.
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)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion