Inter Parfums Inc. reported gains in sales and earnings for its second quarter.
The business had a 15.7 percent uptick in net income, bringing in $6.7 million for the quarter. Net sales were $129.1 million, up 10.2 percent from $117.2 million in the prior-year period. Earnings per share were 22 cents.
Net sales from U.S.-based operations were down 21.7 percent, to $22.4 million, compared to $28.6 million in the prior-year period. Net sales from European-based operations were up 20.5 percent to $106.7 million from $88.6 million year-over-year.
Montblanc posted a 15 percent increase in sales, driven by the men’s Legend and Lady Emblem fragrance lines. Jimmy Choo also posted a 15 percent sales uptick, with Jimmy Choo L’Eau and Jimmy Choo Man Ice adding to the sales of more established scents. Lanvin increased sales by 22 percent year-over-year in the quarter, driven by the rollout of Modern Princess and an improvement in sales in Russia and China.
“The launch of Mademoiselle Rochas has been especially gratifying with sales expanding beyond the brand’s entrenched markets, France and Spain,” said Inter Parfums chief executive officer Jean Madar. “Coach is showing exceptional promise, with sales of the women’s signature scent benefiting from wider distribution, adding approximately $9 million in incremental sales for the quarter. We also expanded and refreshed the Van Cleef & Arpels Collection Extraordinaire with Bois Doré and Rêve de Cashmere during the second quarter.”
In the second half, Inter Parfums will launch Coach for men, which signed James Franco as the face. The company will also release Montblanc Legend Night for holiday.
“As planned, we have a new duo for Karl Lagerfeld called Les Parfums Matières debuting in the second half, but have moved the brand extension for Lanvin’s Éclat d’Arpège to 2018,” Madar said.
U.S. operations faced a tough comparable period, as Inter Parfums launched its first Abercrombie & Fitch men’s scent, First Instinct, and the Hollister duo Wave in the second quarter of 2016. Later this year, the unit is planning to launch Icon Racing by Dunhill and Fantasia by Anna Sui.
Sales into the company’s largest regions were up for the quarter: Western Europe increased 3.8 percent, North America was up 25.3 percent, and Asia increased 19.9 percent.
Inter Parfums is projecting sales between $560 million to $570 million for the full year, with net income between $1.25 and $1.27 per diluted share.