Inter Parfums Inc. posted an 18.7 percent net sales decline for the quarter ended March 31, the company said on Wednesday.
Net sales were $144.8 million, down from $178.2 million in the prior-year period. European-based sales were down 20.6 percent, to $114.1 million, and U.S.-based sales were down 10.9 percent, to $30.7 million.
During the quarter, Coach and Guess both grew, helping to offset declines from most of the other brands. Coach launched Coach Dreams, which boosted brand sales by 35.9 percent.
“We have taken steps to minimize expenses and protect cash flow,” said Jean Madar, Inter Parfums chief executive officer in a statement. “Our operating cost structure, of which variable costs accounts for over two-thirds, should enable us to minimize the impact of reduced sales until 2021 and moved related advertising and promotion expenses to 2021 as well. That includes our planned launches for the Kate Space New York, Jimmy Choo, Anna Sui and Guess brands.”
“More recently we have seen a few encouraging signs of recovery in certain countries in Asia; however, much of our efforts are directed and mobilized on 2021,” Madar continued.
While the company has $200 million in cash on hand and $47 million available via credit facilities, it has decided to temporarily suspend its quarterly dividend. The business did not issue guidance, citing uncertainties related to the COVID-19 pandemic.
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