Inter Parfums Inc. saw net income attributable to the company decline more than 21.5 percent in the third quarter — dragged down by Burberry, which is no longer in the company’s fragrance portfolio — but the company is quickly adding brands to replace the fashion house.
In fact, last month the company’s U.S.-based operations signed a multiyear global licensing pact with Oscar de la Renta. The deal is expected to close next month.
For the three months ended Sept. 30, Inter Parfums reported that net income attributable to the company was $7.9 million, or 25 cents a diluted share, compared with $10 million, or 33 cents a share, in the year-ago period.
Net sales for the quarter ended Sept. 30 declined 23.8 percent to $126.8 million, compared with $166.3 million, in the year-ago period. Excluding Burberry, which is no longer in the fold, net sales gained 45 percent to $126.8 million, compared with $87.2 million.
Sales from the company’s European-based operations of ongoing brands gained 41.2 percent to $98.1 million, compared with $69.5 million in the year-earlier quarter. Including Burberry, European-based sales were down 34 percent.
The company’s sales by U.S.-based operations gained 62.3 percent to $28.7 million, compared with $17.7 million, boosted by the rollout of the Anna Sui fragrance La Vie de Bohème over the summer, as well as sales of the Alfred Dunhill scents and initial sales of Agent Provocateur.
“Our new product pipeline for 2014 points to one of our most ambitious launch years ever, with new scents in the works for Oscar de la Renta, Alfred Dunhill, Agent Provocateur, Karl Lagerfeld and Shanghai Tang. All of these new licensed brands were added over the past 13 months,” stated Jean Madar, chairman and chief executive officer of Inter Parfums. “We are also unveiling new fragrances for the Montblanc, Balmain, S.T. Dupont, Banana Republic and Brooks Brothers brands.
Add to this our expansion initiatives in Asia, a full year of sales of legacy scents for Oscar de la Renta, Agent Provocateur and Alfred Dunhill, our continued search for additional brands, and our very strong balance sheet, and our future looks promising.”