Driven by global growth and new launches, Inter Parfums Inc. posted increased net sales and income for 2017.
For the full year, the business posted net sales of $591.3 million, up 13.4 percent from $521.1 million for 2016. Net income was $55.3 million, up 28 percent from $43.2 million the prior year. Diluted earnings per share was $1.33, compared to $1.07 for 2016.
For the fourth quarter, Inter Parfums posted $149.5 million in net sales, up nearly 11 percent from $134.7 million in the prior-year period. Net income was $5.8 million, up from $4.6 million in the prior-year period. Diluted income per share was 14 cents, up from 13 cents.
The company’s gains were due to growth in all markets, as well as fragrance launches, according to Jean Madar, Inter Parfums chairman and chief executive officer.
North America officially became the company’s largest market, gaining 19 percent year-over-year. Sales in Western Europe and Asia grew 8 percent each. Central and South American sales were up 16 percent; Middle East sales gained 21 percent, and Eastern European sales were up 20 percent, according to the company.
“Our three largest brands all posted growth for the year, with Montblanc up 4 percent, Jimmy Choo up 20 percent and Lanvin up 5 percent,” Madar said, noting that Jimmy Choo’s fragrance sales surpassed the $100 million mark, joining Montblanc.
“Our newer brands performed exceptionally well last year, with Coach and Rochas brand sales growing by 149 percent and 34 percent, respectively, versus one year earlier,” Madar said. “Our first Coach fragrance only launched mid-2016, and today that brand is our fourth largest, which was achieved without a legacy fragrance business.”
The company called out Dunhill and Oscar de la Renta as well-performing brands from the U.S. business segment. “With the recent introduction of Bella Blanca by Oscar de la Renta, our 2018 launch schedule is on track with new products for Abercrombie & Fitch, Hollister, Dunhill and Anna Sui coming to market through the year,” Madar said.
Guess, a fragrance license Inter Parfums said it bought in February, is expected to boost incremental sales once the license starts on April 1 .”We expect that right out of the gate, the Guess run rate will make it the largest brand in this group,” Madar said, talking about U.S. operations.
Inter Parfums is also planning to discontinue certain lines. “For many years, our focus has been on growing our prestige fragrance business and brand portfolio; therefore during the fourth quarter of 2017, we set in motion a plan to discontinue several of our small mass market product lines over the next few years,” said Russell Greenberg, Inter Parfums chief financial officer.
Inter Parfums released 2018 guidance of $620 million in net sales and income of $1.44 per diluted share for 2018, but noted that it will revise those figures once it acquires Guess’ fragrance inventory.