PARIS — Inter Parfums Inc. turned to new products to fill in the second-quarter sales gap left by Burberry, which took back its business last year.
The New York-based beauty company managed to push its net sales up 0.6 percent to $118.2 million from $117.5 million a year earlier, when the exit of the Burberry business generated sales of $20.7 million.
Ongoing businesses saw a sales rise of 22.1 percent, driven by a 31.2 percent gain in Europe, where sales totaled $94.7 million.
Jean Madar, chairman and chief executive officer, attributed the gain in Europe to new product launches.
“Montblanc brand sales were up 88 percent with the spring launch of the second men’s line, Emblem, in addition to the steady gains from the brand’s Legend fragrances,” Madar said. “Also in the spring, our first Karl Lagerfeld fragrances were introduced; these signature scents for men and women delivered approximately $4 million in incremental sales during the second quarter of 2014.”
Illustrating the importance of newness in the category, the company’s Jimmy Choo sales slipped 6 percent in the quarter, when there were no new products. That followed a 40 percent gain a year ago when the brand’s Flash offering was launched. Madar said he expected the brand to see “more robust sales” in the second half with the launch of Jimmy Choo Man.
In the U.S., Inter Parfums’ sales slipped 4.7 percent to $23.5 million, a decline the company attributed to a tough comparison with the prior year, when it took over the manufacture and distribution of Dunhill legacy fragrances.
Inter Parfums is looking for net sales of about $495 million for the full year, with nearly 15 percent growth from ongoing brands. The company also narrowed its earnings per share guidance for the year to a range of 93 cents to 95 cents. Previously, the company said earnings could be as high as 98 cents a share.