The global economic crisis and the negative effects of currency exchange led to declines across the board at Inter Parfums Inc. for the first quarter ended March 31.
This story first appeared in the May 12, 2009 issue of WWD. Subscribe Today.
Quarterly profits fell 34.8 percent to $7.3 million from $11.1 million in the year-ago quarter. Net income per diluted share attributable to common shareholders was down by 35.7 percent to 18 cents versus 28 cents in the same period a year ago.
Sales were also down. Revenues for the most recent quarter came in at $90.4 million, a 26.6 percent decline from $123.2 million a year ago, or a decrease of 21 percent at comparable foreign exchange rates.
Gross margins declined to 59.2 percent of sales from 60.2 percent in the first quarter of last year.
“The global economic crisis and its impact on discretionary consumer spending were certainly factors in the comparable-quarter decline in sales,” said Jean Madar, chairman and chief executive officer of Inter Parfums Inc., adding, “The strength of the U.S. dollar relative to the euro had the net effect of depressing 2009 first-quarter sales by about 6 percent as compared with last year.
“Also, significant growth in the first quarter of 2008 as compared to the first quarter of 2007 made for a difficult comparison,” Madar said.
Sales from the firm’s European operations were down 26 percent to $82 million, compared with $110.6 million a year ago, while sales from the firm’s U.S. operations were down by 33 percent to $8.4 million, compared with $12.6 million last year.
Inter Parfums, which produces personal care products for Burberry, Van Cleef & Arpels, Paul Smith, S.T. Dupont, Christian Lacroix, Quiksilver and Roxy, Gap, Banana Republic, New York & Company, Brooks Brothers and Bebe, affirmed its full-year 2009 guidance, which calls for net sales of $390 million and net income of about $21 million, or 70 cents a diluted share.