Most Recent Articles In Financial
Latest Financial Articles
- China’s PMI Falls, Asian Stocks Suffer
- Update: Europe Stocks Suffer Steep Decline, Dow Off 374 Points
- Myer Sees Profit Slide, Unveils Turnaround Plan
More Articles By
Inter Parfums Inc. said late Thursday its talks with Burberry had ended and that the fashion brand would buy back its fragrance license at the end of the year, taking about half of the beauty company’s net sales with it.
Burberry will pay 181 million euros, or $220.8 million at current exchange, exclusive of receivables, inventories and other assets. In a recent research note, Citi said the Burberry fragrance business makes up about 2 percent of Burberry’s revenues and about 50 percent of Inter Parfums’.
Inter Parfums stressed that it still has a portfolio of brands, a “high effective business model,” a flexible organization, creative know-how, a worldwide distribution network and a streamlined operating structure. It markets beauty products under a range of brands including Lanvin, Jimmy Choo, Van Cleef & Arpels, Montblanc, Paul Smith, Boucheron, Brooks Brothers, Gap and Nine West.
“We will also benefit from substantial resources to potentially acquire one or more brands, either on a proprietary basis or as a licensee,” the firm said. The company expects to start off next year with nearly $250 million in cash.
“Based on current growth rates for all of our portfolio’s brands, our preliminary full-year sales target for 2013 may reach approximately $400 million at current exchange rates,” said Jean Madar, chairman and chief executive officer.
Russell Greenberg, executive vice president and chief financial officer added: “This new situation will allow us to strengthen investments supporting all of our portfolio’s brands to accelerate their development while maintaining an operating margin of more than 10 percent. Opportunities for external growth will be examined without urgency, with the priority of maintaining the quality and homogeneous nature of our portfolio.”