Inter Parfums Inc. posted gains for the third quarter, driven by continued sales of Jimmy Choo and Coach fragrances.
Net sales were up 4.5 percent to $177.2 million. Net income increased 10.9 percent to $18.9 million, while net income per diluted share rose 9.1 percent to 60 cents.
Sales were driven by the continued success of the Jimmy Choo and Coach fragrance lines, which were up 19.7 percent and 40.9 percent, respectively.
“The nearly 12 percent year-to-date increase in net sales by European-based operations was primarily due to brand extensions for the bestsellers among our largest brands, energizing product selections within our other brands and expanding distribution, all the while supporting these efforts with well-planned and executed advertising and promotional programs with a far greater emphasis on digital media,” said Jean Madar, chairman and chief executive officer of Inter Parfums.
In the U.S., Inter Parfums’ acquisition of the Guess fragrance license from Coty Inc. helped drive sales, which were up 12.9 percent to $39.4 million for the region. Abercrombie & Fitch and Hollister also launched extensions, and Anna Sui’s fragrance continued to sell well in Asia.
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The company began shipping Guess Inc. products toward the end of the second quarter, Madar said on the company’s earnings call, and made major holiday shipments in September and October.
“In 2019 we will further expand existing pillars with a fragrance called 1981 Los Angeles. We’ll have domestic distribution in the spring followed by international rollout in the fall and later in the year we’ll have a product called Seductive Noir,” Madar said. “It’s a brand extension for the pillar called seductive which started in 2010. These brand extensions will be supported by fresh, new advertising that was just shot last week and also promotional campaigns. And of course, as we mentioned before, we’ll have the new major blockbuster for Guess in the beginning of 2020.
“On both sides of the Atlantic, we have ambitious plans for the coming year. With regard to European operations, our largest brands, Montblanc and Jimmy Choo, both have new men’s scents debuting and there will be new women’s fragrances for Coach and Lanvin. For U.S. operations, 2019 launches are for the most part brand extensions, including one for Anna Sui’s Fantasia, an addition to the Guess 1981 fragrance family, a sister scent for Oscar de la Renta’s Bella Blanca and a flanker for the Dunhill Century fragrance line, among others.”
The company also said it is developing a four-scent “superluxury” collection for Graff, a license it signed in April. Separately, the business will launch a multiscent fragrance collection with Lily Aldridge in 2019 as part of a partnership with IMG Models.
“Direct-to-consumer sales backed by social media rather than traditional advertising make this a very attractive and scalable business opportunity,” Madar said of the IMG deal.
In the coming months, Inter Parfums is developing a scent called Explorer for Montblanc, a men’s scent for Jimmy Choo and a multiscent men’s collection for Dunhill.
For the full year, the company expects $665 million in net sales with net income per diluted share of $1.61.