Alongside Coach, Abercrombie & Fitch and Hollister fragrances are driving sales at Inter Parfums Inc.

“Abercrombie & Fitch and Hollister fragrances have been the real growth category for our U.S. operations this year,” said Jean Madar, Inter Parfums chairman and chief executive officer on the company’s earnings call Nov. 9. “In international markets, these names are viewed as American fashion brands so they are being sold in perfumeries, in beauty boutiques, department and specialty stores and travel retail.” The company is working on a flanker for Hollister’s wave fragrance for the second quarter, Madar said.

Inter Parfums is revamping its China strategy for the lines and creating smaller sizes brand the brands in order “to have a lower entry price point in order for people to try for their own consumption as opposed to only using fragrance as a gift,” Madar said. “Besides the smaller size, we are doing also a lot of promotions in secondary and tertiary cities in China.”

Over at Coach, rolling out a men’s fragrance and different formulation for the Asian market are in the works. “Our first men’s scent for Coach is in the pipeline for a full launch,” Madar said. In Europe, Coach posted $13.8 million in incremental sales for the quarter, according to the company. “The fragrance is somewhere different [for] the Asian market as we’re testing in eau de toilette in Hong Kong, South Korea and Singapore,” Madar said. “The launch in China and Japan will happen in 2017. I know I have said it before but the Coach brand is very important in Japan.”

Other launches are under way at Oscar de la Renta, Rochas, which Inter Parfums acquired in 2015, and Karl Lagerfeld. Lavin Modern Princess, which launched in France, will be rolled out internationally for 2017, the company said.

Montblanc generated gains of 11 percent with $32.9 million in sales; and Rochas fragrance sales more than doubled to $7 million year-over-year.

“Most of the promotion and advertising spend is through our European operations and that makes sense because almost 80 percent of sales run through our European operations,” Madar said. “You’re going to advertise during those period where the retailers are really trying to put the product in the market and move the product through the market….We spent somewhere around $60 million through the first nine months,” Madar continued. Future spending will be on Montblanc, Jimmy Choo, Coach and Abercrombie, he said.

Net income for the quarter was up 14.2 percent year-over-year to $16.2 million from $14.2 million for the third quarter. Net sales were $157.6 million, a 13.4 percent gain from $138.9 million in the prior-year period. Sales in the business’ European subsidiary were up 12 percent to $123.4 million from $110.1 million in the prior-year period. Earnings per diluted share increased 13 percent to 52 cents from 46 cents. Margin decreased to 60 percent from 62 percent because more sales were from holiday gift sets, which have a lower margin, the company said.

Inter Parfums SA, the company’s European subsidiary, set an 8 percent growth target for 2017. The company said it expects sales to reach 380 million euros, or $420 million, during the year. The U.S. portion of the business will release projections on Nov. 14.

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