Fragrance business Inter Parfums recorded sales gains in its U.S. and European business segments for the second quarter.
Inter Parfums Inc., the U.S.-based parent company, posted a 14.8 percent sales increase for the second quarter, with sales of $117.2 million compared with $102 million year-over-year. For the six months ended June 30, Inter Parfums sales were up 1.3 percent year-over-year to $48 million from $47.4 million.
“International distribution of our first new Abercrombie & Fitch men’s scent, First Instinct and the Hollister duo, Wave, were major contributors to our top-line growth,” said Inter Parfums chairman and chief executive officer Jean Madar. “In the second half, distribution of these new scents will continue to roll out to additional international markets. Dunhill has been a consistent top-performing brand and this reporting period is no exception, with comparable-quarter sales up 23 percent, which was achieved in the absence of a new product launch.”
“We have a number of launches coming in the second half, most notably, our first Coach scent. In mid-September, it will enter 3,000 U.S. doors and should be available in 20,000 doors worldwide by the end of 2017,” Madar continued.
The business remains on track to achieve net sales of $500 million to $510 million, according to executive vice president and chief financial officer Russell Greenberg. Net income is expected to range between $1.05 and $1.10 per diluted share, excluding the impact of a non-recurring tax settlement of $1.9 million with the French Tax Authorities.
Meanwhile, Interparfums SA, the Paris-based subsidiary of Inter Parfums Inc., reported first-half sales of 162.3 million euros, or $181.1 million at average exchange, up 10.3 percent due largely to the performances of Montblanc and Jimmy Choo fragrances plus the integration of Rochas perfumes after the label was acquired last year. At constant exchange, Interparfums revenues rose 10.5 percent.
In the six months, Montblanc scents generated sales of more than 55 million euros, or $61.4 million, representing a 31 percent gain. Jimmy Choo fragrances’ revenues grew 17 percent to almost 40 million euros, or $44.6 million. While Rochas registered sales of 13.7 million euros, or $15.3 million, in the half.
Otherwise, revenues from Lanvin scents were down due to economic slowdowns in Russia and China — two key markets for the brand.
Sales for Interparfums SA gained 28 percent in North America, 33 percent in Western Europe, 26 percent in France and almost 9 percent in Asia. Its business declined in Eastern Europe and South America.
Philippe Benacin, chairman and ceo of Interparfums SA, expressed satisfaction with the half’s results despite difficult economic, financial and foreign-exchange conditions adversely impacting fragrance and cosmetics markets in some countries, especially China, Russia and Brazil. He confirmed the company’s sales guidance for 2016 of 340 million euros, or $373.7 million, as well.
Also for the full year, Interparfums SA’s operating margin should be in the 12 to 13 percent range, according to Philippe Santi, company executive vice president.
“In the 2015 first half, we had a particularly high operating margin of more than 14 percent, in large part attributable to the strong rise in the U.S. dollar’s value, plus in the absence of major initiatives in the period, limited launch expenses,” he stated. “In the 2016 first half, with a marginal currency effect, our operating margin should return to a more normative level of around 13 percent.”