PARIS — The French stock market responded favorably Thursday to the news that Inter Parfums SA and Coach Inc. had signed an 11-year global licensing agreement for Coach fragrances.
This story first appeared in the April 10, 2015 issue of WWD. Subscribe Today.
The share price of Inter Parfums SA, the Paris-based subsidiary of Inter Parfums Inc. of New York, closed the day up 4.8 percent to 32.46 euros, or $34.59 at current exchange.
Inter Parfums is to create, produce and distribute new fragrances and fragrance-related products to department and specialty stores, duty-free shops and Coach stores starting in fall 2016.
“It makes sense to have this brand today because we have no other that competes with this one in the portfolio,” Philippe Benacin, chairman and chief executive officer of Inter Parfums SA, told WWD. “The fragrance is very much American. It’s another way of telling the story.”
It is understood Coach is winding down its fragrance and beauty license with the Estée Lauder Cos. Inc.’s BeautyBank division, which was signed in 2006. Under Estée Lauder, the accessories and fashion label launched two fragrance franchises — a signature line and Poppy.
Benacin said looking ahead, a new women’s fragrance for Coach should come out in late 2016. Inter Parfums SA will use its international distribution network to sell Coach fragrances.
“As our brand transformation continues to progress, and with Inter Parfums as our partner, we know we can leverage this category into a much larger global opportunity,” stated Victor Luis, ceo of Coach. “Given Inter Parfums’ successful track record of cultivating and growing fragrance lines for fashion and luxury goods brands, they were the ideal choice to take our business to the next level.”
Inter Parfums SA has been acquisitive of late, last month buying Rochas’ fashion and fragrance businesses.
With incremental sales from Rochas and Coach activities, the company is moving toward the level of business it had in 2012 — which was at more than 400 million euros, or $514.4 million at average exchange for the year — prior to the termination of its Burberry fragrance and beauty license.
As reported, Inter Parfums SA’s 2014 revenues reached 297.1 million euros, or $395 million.
Inter Parfums SA, which has 12 fragrance brands including Balmain and Van Cleef & Arpels, is gearing up for a major Jimmy Choo launch in the second half of 2015, plus several Montblanc projects, among other initiatives.