Increased European-based product sales have boosted Inter Parfums Inc.’s net sales for the first quarter 2.1 percent, the company said.
The perfume business brought in $111.5 million in net sales for the first quarter of 2016, up from $109.2 million year-over-year. At comparable currency exchange rates, the company’s net sales rose 3 percent, to $112.5 million. For the first quarter, the average U.S. dollar-to-euro exchange rate was 1.10, compared to 1.13 for the first quarter of 2015.
For the first quarter, sales for European-based products grew 6.2 percent to $92.1 million, from $86.7 million for the first quarter of 2015. U.S.-based product sales declined 13.7 percent to $19.4 million. For the first quarter of 2015, U.S.-based product net sales were $22.5 million.
“The 13.7 percent decline in first-quarter sales is best understood in the context of difficult comparisons with the prior year’s first quarter, when Extraordinary by Oscar de la Renta and Icon by Dunhill were launched,” said Inter Parfums chief executive officer and chairman Jean Madar in a statement. “With our first-ever fragrance launches for Abercrombie & Fitch and Hollister, along with several other new product introductions within our U.S. operations brand portfolio, we expect better quarterly comparisons later in the year.”
Montblanc brought in $35 million for the first quarter of 2016, up 29 percent in dollars and 32 percent in local currency, year-over-year. “The promising launch of Montblanc Legend Spirit was an important contributor to brand sales, and we expect this new men’s scent to be a growth pillar for the Montblanc brand,” Madar said.
Jimmy Choo was the second largest by net sales, with $21.4 million, down 1 percent in dollars but up 1 percent in local currency. Sales were driven by the Jimmy Choo Illicit line, as well as Jimmy Choo Man and Jimmy Choo Blossom.
Sales were not as positive for Lanvin fragrances, where sales contracted 25 percent to $12.2 million. The decline came from economic slowdowns in two flagship markets — Russia and China — Madar said. Lanvin is launching a new women’s fragrance line this fall.
Rochas, which Inter Parfums acquired in June 2015, had $6.4 million in incremental sales, mainly from Spain and France with its Eau de Rochas and Rochas Man lines, according to Madar.
The company said it plans to issue full results for the quarter on or around May 10.
For the fourth quarter, Inter Parfums increased net sales by 1 percent on a constant currency basis, with $118.3 million from $125.1 million, but the company’s net income dropped. Without taking exchange rates into account, sales declined 5.4 percent for that quarter. Inter Parfums’ Paris-based subsidiary, Inter Parfums SA, had a 25 percent increase in net profits for 2015, driven by performance from Montblanc and Jimmy Choo.