Driven by sales of Roxy and Paul Smith Rose fragrances, Inter Parfums SA announced third-quarter sales were up 8.4 percent year-on-year at 65.1 million euros, or $89.5 million at constant exchange for the three-month period.
PARIS — Driven by sales of Roxy and Paul Smith Rose fragrances, Inter Parfums SA announced third-quarter sales were up 8.4 percent year-on-year at 65.1 million euros, or $89.5 million at constant exchange for the three-month period. But given an ongoing unfavorable currency impact, the firm trimmed up to 10 million euros, or $14.3 million, from its full-year sales forecasts.
The company, which is a subsidiary of New York-based Inter Parfums Inc., said the negative impact of the strong euro, expected to weigh in at around 5 million euros to 6 million euros, or $7 million to $8.6 million at current exchange, will mean its full-year sales are likely to come in at between 235 million euros and 240 million euros, or $335.1 million and $342.2 million. It had previously forecast 2007 sales in the region of 245 million euros, or $349.4 million.
"After very robust growth in July and August, September came in below our expectations," said Philippe Benacin, the company's chairman and chief executive officer, in a statement. "In contrast, October sales remain on target. The weak U.S. dollar, challenges in building up Van Cleef & Arpels inventories to meet demand and a slower-than-expected start-up of our European distribution subsidiaries have reduced earnings visibility. Net profit is expected to be around 19 million euros [or $27 million] for fiscal year 2007. These developments in no way affect our ambitions and our road plan for the years ahead."
The firm said in the statement a negative currency effect of an estimated 4 million euros, or $5.7 million, on operating profit will be limited "by tight control over operating expenses."
For the nine months ended Sept. 30, sales totaled 175.4 million euros, or $235.8 million, representing an increase of 8.8 percent. At constant exchange, sales were up 11.2 percent in the third quarter and 11.7 percent in the first nine months of the year.
The firm said France, the Middle East and Eastern Europe generated double-digit sales growth so far this year while trends in Western Europe and North America remained "positive."
Inter Parfums also said its licensing agreement with Quiksilver has been extended to include men's scents. A first line is scheduled to launch in fall 2008.
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