Inter Parfums Inc. posted gains in sales for its second quarter.
The fragrance business posted a 10.2 percent jump in net sales to $129.1 million, up from $117.2 million in the year-ago period. Sales from the company’s European subsidiary were up 20.5 percent year-over-year, to $106.8 million from $88.6 million, while the U.S. portion of the business was down 21.6 percent from the year-ago quarter, with sales of $22.3 million. For the six months ended June 30, the Europe unit posted a 25.3 percent year-over-year gain, to $226.5 million, and the U.S. unit had a 4.6 percent year-over-year decline, to $45.7 million.
European operations were driven by organic growth in established lines, plus the launch of the Coach women’s scent and Mademoiselle Rochas, according to Inter Parfums chairman and chief executive officer Jean Madar. “The 15 percent increase in second-quarter Montblanc fragrance sales offset the decline in the first quarter and thus year-to-date, Montblanc fragrance sales are slightly ahead of the first half of 2016,” Madar said. “Jimmy Choo brand sales are up 15 percent in the second quarter, and 36 percent in the first half due to two recent extensions — Jimmy Choo L’Eau and Jimmy Choo Man Ice — as well as from solid sales of the brand’s established collections for women and men.”
Lanvin, which posted a dip in sales for 2016 because of market weakness in Russia and China, posted 22 percent growth in the second quarter, according to the company. “The turnaround reflects the international distribution of Modern Princess, solid sales of the ever-popular Éclat d’Arpège and a welcome improvement in Eastern European and Asian markets,” Madar continued. “The launch of Mademoiselle Rochas in approximately 10 markets and the strength of the brand’s established lines produced a 23 percent increase in Rochas brand sales for the second quarter and 31 percent year-to-date. Coach brand sales were excellent, reflecting the positive market response to the signature scent we launched in the 2016 second half and the continued rollout this year.”
U.S. operations had a tough comparison with the prior-year period, when the first Abercrombie & Fitch men’s scent, First Instinct, and Hollister fragrance duo, Wave, launched. The second quarter was “somewhat uneventful” in terms of new product launches, Madar noted, “but included international distribution of First Instinct for women and Wave 2.” Madar noted more significant launches are scheduled for the second half of 2017, including Icon Racing by Dunhill and Fantasia by Anna Sui.
Inter Parfums raised its guidance, and now expects net sales between $560 million and $570 million, and earnings per share between $1.25 and $1.27. The business said it plans to release further financials for the quarter on Aug. 7.