Inter Parfums Inc. reported a first-quarter net sales decline of more than 10 percent, due in part to the negative impact from the strong dollar.
For the three months ended March 31, company net sales decreased 10.3 percent to $109.2 million, compared with $121.7 million in the year-ago period. The company said that at comparable foreign currency exchange rates, consolidated first quarter net sales were $118.4 million.
By division, its European-based product sales declined 15.2 percent to $86.7 million, while its U.S.-based product sales gained 16 percent to $22.5 million, driven by two new launches, namely Extraordinary by Oscar de la Renta and Icon by Dunhill.
Jean Madar, chairman and chief executive officer of Inter Parfums, cited difficult year-over-year comparisons and the foreign exchange for the sales decline in European operations. He stated, “The decline in sales is also due in large part to the difficult comparison for the Karl Lagerfeld brand. The launch of Karl Lagerfeld’s signature scents for both men and women yielded more than $13 million in sales in 2014, as compared to brand sales of $2.5 million in 2015. With a new Karl Lagerfeld product launch scheduled for later this year, we expect to see more robust brand sales. The nearly 20 percent depreciation of the euro versus the dollar masked many of the gains in comparable quarter sales volume. For example, Montblanc fragrances experienced a 19 percent sales increase in local currency, as compared to a 2 percent decline in dollars with Montblanc Legend and Emblem as the two main sales drivers.”
The company plans to issue full results on May 11.