New York-based Inter Parfums Inc. met Wall Street analysts’ expectations for the third quarter by turning in profits that were up 9.3 percent to $6.2 million, from $5.7 million a year ago, or net earnings per diluted share of 20 cents, versus 18 cents a year ago.
Results were boosted by record sales that, as previously reported, increased 20.7 percent to $123.5 million from $102.3 million in the same period last year. Sales were up by 16 percent at constant exchange rates.
Driving the increase in revenues were new product launches, such as Van Cleef & Arpels’ Féerie and Jeanne Lanvin, according to Jean Madar, chairman and chief executive officer of Inter Parfums Inc.
“These two major new product launches were responsible for much of the top-line growth,” he said. “Additionally, Burberry fragrance sales have continued to increase with this year’s growth driven by the successful worldwide launch of the new women’s line Burberry The Beat.”
He went on to note, “As our Paris-based subsidiary announced in September, we have Lanvin L’Homme Sport unveiling next summer, with tennis sensation Rafael Nadal, the Wimbledon, French Open and 2008 Olympic gold medal winner, as our model and spokesperson.”
In local currency, Burberry fragrance sales for the current three- and nine-month periods are running 2.9 percent and 13.6 percent ahead of the respective periods in 2007, the firm stated in late October.
For the most recent quarter, gross margins were up by 12.1 percent to $67.3 million, but operating profits dropped by 8.9 percent on higher selling general and administrative costs, which were up by 17.5 percent to $56 million.
Year to date, profits were up by 22.8 percent to $18.7 million from $15.2 million in the first nine months of 2007. Sales for the nine months rose by 28 percent to $345.8 million from $270.2 million last year, a 22 percent increase at constant exchange.
Last month, the company reaffirmed its full-year 2008 guidance, projecting net sales, net income and diluted earnings per share of approximately $460 million, $26.8 million and 87 cents a diluted share, respectively.
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