Inter Parfums Inc. generated a better-than-expected first-quarter profit as sales fell on currency translation and the lack of a launch with the power of last year’s Karl Lagerfeld’s signature scents a year ago.
In the three months ended March 31, the firm’s net income rose 12.5 percent to $10 million, or 32 cents a diluted share, from $8.9 million, or 29 cents, in the year-ago period.
Analysts, on average, expected earnings per share of 28 cents.
Revenues declined 10.3 percent, to $109.2 million from $121.7 million, and declined 2.8 percent at constant currency. U.S.-based operations registered a 16 percent revenue increase, to $22.5 million, while European-based operations saw sales fall 15.2 percent to $86.7 million.
Jean Madar, chairman and chief executive officer, said that sales of Montblanc and Jimmy Choo, up 19 and 52 percent, respectively, in local currency, were down 2 percent and up “only 25 percent” in U.S. dollars, reflecting the weakening of the euro versus the dollar.
“The second factor was last year’s launch of Karl Lagerfeld’s signature scents for men and women, which produced more than $13 million in brand sales in the first quarter of 2014 compared to $2.5 million in the current first quarter,” Madar said, emphasizing that drop-off was only partially offset by the introductions of Extraordinary by Oscar de la Renta and Icon by Dunhill, even as sales of both “have surpassed our expectations.”
Madar expects to close on the acquisition of Rochas, agreed to in March, by the middle of the fiscal year.