Inter Parfums Inc. continued to post gains for the second quarter.
Net income for the quarter increased 34 percent to $5.8 million, or 19 cents per diluted share, up from $4.4 million, or 14 cents, a year ago, and above analyst estimates of 18 cents.
Inter Parfums posted a 14.8 net sales increase for the second quarter, with sales of $117.2 million compared with $102 million year-over-year. For the first half of the year, sales were up 1.3 percent to $48 million from the year-ago period. The company said international distribution for its first Abercrombie & Fitch men’s scent, First Instinct, and Hollister duo, Wave, contributed to growth. Inter Parfums also called out Dunhill as a solid performer.
“Dunhill fragrances continue to be consistent top performers, achieving an increase of 23 percent in brand sales for the period,” said Inter Parfums chief executive officer and chairman Jean Madar.
Inter Parfums, which is based in the U.S., and Inter Parfums SA, its Paris-based subsidiary, both reported net sales numbers back in July.
Inter Parfums SA had first-half sales of 162.3 million euros, up 10.3 percent year-over-year. That increase was driven by performance by Montblanc and Jimmy Choo, plus the integration of the Rochas perfumes after the label was acquired in 2015.
For the full year, the combined Inter Parfums is forecasting net sales between $500 million and $510 million, with net income between $1.05 and $1.10 per diluted share.
“Thus far this year, our two largest markets were also our two fastest-growing markets with sales in Western Europe and North America up 44.6 percent and 10.5 percent respectively,” Madar said. “Despite negative market conditions in China, our overall sales in Asia, our third largest market, are slightly ahead of the first half of last year.”
“Once again, Montblanc, our largest brand, drove our top-line growth with brand sales of $26.3 million, up 32 percent from last year’s second quarter,” Madar said, talking about the company’s European unit. “This growth was primarily due to strong sales of the newly launched Legend Spirit line and the ongoing success of the original Legend line. Our second largest brand, Jimmy Choo, also had a strong second quarter with brand sales up 43 percent to $22 million, reflecting wider distribution of Illicit, which debuted last year, and the steady performance of Jimmy Choo Man, which launched in 2014. Rochas fragrances contributed $8.9 million to second-quarter sales resulting from sales of legacy scents in the brand’s core markets of Spain and France. Lanvin fragrance sales declined 19 percent to $12.4 million due primarily to the economic slowdown in two of its primary markets, Russia and China. We hope to counter this trend with a new Lanvin women’s line Modern Princess, launching in selected markets this fall and internationally in 2017.”
For the second half of the year in the U.S., Madar said he expects the debut scent of Coach and continued rollout of scents from Abercrombie & Fitch and Hollister to drive sales, as well as the launch of Dunhill’s Icon Elite. The business has an earnings call scheduled for 11 a.m. Wednesday.