Inter Parfums Inc. saw bottom- and top-line gains in the second quarter and said it has a pile of cash ready to reinvent for post-Burberry life next year.
Net income attributable to Inter Parfums rose 20.3 percent to $6 million, or 20 cents a share, from $5 million, or 16 cents, a year earlier. Sales for the quarter ended June 30 rose 20.2 percent to $145.6 million from $121.1 million.
“With strong performances across our prestige brand portfolio, we achieved an 18 percent increase in European-based sales,” said Russell Greenberg, executive vice president and chief financial officer. “U.S.-based operations achieved 37 percent sales growth, with the inclusion of Anna Sui fragrance sales since the start of the year accounting for much of that gain.”
At the end of this year, Burberry Group will buy back its beauty and fragrance rights from the company for 181 million euros, or about $220 million at current exchange, excluding receivables, inventories and other assets.
“We have planned for this eventuality and face this new chapter in our history with confidence,” said Jean Madar, chairman and chief executive officer. “We expect to begin 2013 with nearly $250 million in cash and shareholders’ equity of approximately $375 million, placing us in an excellent financial position to support the growth of existing brands and further enhance our growth potential by seeking to add new brands to our portfolio either on a proprietary basis or as a licensee.”
The beauty firm’s licensed businesses include Lanvin, Jimmy Choo, Gap, Brooks Brothers and others.