Inter ParfumS Inc.’s sales declines moderated in the second quarter, and the company projected further improvement in the second half.
The New York-based firm reported net revenues for the second quarter ended June 30 of $88.6 million, down 10.6 percent from $99.1 million in the same period a year ago, and off 3 percent at comparable exchange rates. The double-digit dip was better than the 19.4 percent decline — to $179 million from $222.2 million — registered during the first half. Excluding currency effects, the first-half decrease was 13 percent.
Jean Madar, chairman and chief executive officer, said, “In light of the worldwide decline in consumer spending and the corresponding destocking of fragrance inventories by distributors and retailers, our 10.6 percent decline in net sales is rather modest and considerably less than many of our peers.”
The firm’s European-based operations generated sales of $79.4 million, compared with $83.9 million in the same period in 2008. Second-quarter sales of U.S.-based operations declined to $9.2 million from $15.2 million.
The company stated that, “based upon its new product launch schedule, as well as the seasonality of its business, [Inter Parfums Inc.] expects a stronger second half.” It maintained full-year guidance for sales of $390 million and net income of $21 million or 70 cents a diluted share.
Meanwhile, the firm’s Paris-based affiliate, Inter Parfums SA, posted first-half 2009 net sales of 121.3 million euros, or $161.71 million at average exchange, down 5 percent from the 2008 quarter.
By beauty brand, Lanvin’s revenues rose 25 percent to 19 million euros, or $25.3 million. Burberry’s business fell 11 percent to 77.8 million euros, or $103.72 million, due to a high year-ago comparison, Inter Parfums stated. In the first half of last year, Burberry’s fragrance business grew 19 percent. Van Cleef & Arpels’ revenues gained 4 percent to 9.4 million euros, or $12.53 million. Paul Smith’s sales dropped 13 percent to 5.4 million euros, or $7.2 million in the period.
Inter Parfums said markets such as the U.S., U.K., Spain, Brazil and Argentina remained adversely impacted by local economic conditions. “Satisfactory” performances were noted in France, China and Saudi Arabia. Meanwhile, business in Russia has improved since the start of 2009, according to Inter Parfums.
Amid reduced visibility, the company expects a “marginal decline” in revenues for full-year 2009.
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