The Coach fragrance business has turned into a major bright spot for Inter Parfums Inc.
The fragrance business said that in 2018, sales from Coach’s five fragrances reached almost $100 million, a 73 percent gain from the prior-year period. Coach first introduced fragrance in mid-2016.
“For Coach, we are relying on established scents and the second Floral flanker to sustain brand sales in 2019, as we prepare for a major women’s fragrance launch in 2020,” chief executive officer Jean Madar said on the company’s earnings call Monday.
The brand is just one of many drivers in the Inter Parfums business. The company posted gains across the board for the fourth quarter, numbers unveiled Monday showed.
The fragrance business saw net sales jump 18.5 percent to $177.5 million in the quarter. Net sales from European operations were up 16.8 percent to $134.8 million, and net sales from U.S. operations were up 24.4 percent to $42.4 million. Net income was up 82.9 percent to $8 million, compared to $4.4 million in the prior-year period.
North America, Western Europe and Asia saw sales gains of 19 percent, 9 percent and 24 percent, respectively. The company’s Middle East business was also up 17 percent year-over-year, according to Madar.
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Montblanc remains the largest brand in the European division, and posted sales gains of 1.4 percent despite not launching any new scents. Jimmy Choo sales were up 8.4 percent, driven by Jimmy Choo Fever. In 2020, Jimmy Choo plans to expand into lipsticks and nail polish, Madar said on the company’s earnings call. Lanvin, the company’s fourth-largest franchise, posted a 7 percent gain, led by Éclat d’Arpége.
In the group’s U.S. operations, Guess legacy scents, Anna Sui and Abercrombie & Fitch drove sales gains. Madar said Monday that Guess has the potential to be a $100 million brand in the next few years.
Inter Parfums has several major fragrance launches slated for 2019, including Montblanc Explorer, Rochas Moustache and Abercrombie & Fitch Authentic. Other planned launches include a signature scent for Dunhill, a new men’s pillar for Jimmy Choo, and Lanvin’s A Girl in Capri. Graff, which Inter Parfums acquired the license for in April, has a fragrance collection planned for late in the year. Lily Aldridge’s brand will start selling its first fragrances exclusively online this fall.
For 2019, Inter Parfums is projecting net sales of $712 million and net income per diluted share of $1.85.