Inter Parfums is expecting this fall’s Coach fragrance launch to be a big one, according to executives speaking on the company’s earnings call Wednesday morning.
The brand’s fragrance, which starts its rollout this fall, will begin in 3,000 doors initially and then expand into further doors, said Inter Parfums Inc. chief executive officer Jean Madar.
“By end of 2017 we are looking to be in 20,000 doors worldwide,” he said. “The Coach brand…is the second largest important brand in Japan after Louis Vuitton.”
“We are launching first with eau de parfum, which is the fragrance that is more for the USA — it’s white flower, which we think is the right smell for this market,” Madar said. “For Asia, we’ll be launching eau de toilette. It’s a different fragrance and we will test it in Hong Kong and Korea and Singapore, but China and Japan…will happen more in 2017. We think that we’ll have more visibility for this important market for 2017.”
Inter Parfums is also expecting to benefit from Coach’s recent revamp. Chief financial officer Russell Greenberg said the business is trying to “improve the image of the their brand and cut down on some of the distribution that may not be the most favorable.” Adding, “I think that’s going to bode well for the fragrance launch. Hopefully we’re going to kind off feed on each other.”
“The amount of advertising we’re going to put behind the Coach [fragrance] is also going to be favorable for the fashion brand,” Greenberg continued.
Inter Parfums posted gains in sales and income for the second quarter, in results reported Tuesday evening. Net income for the quarter was up 34 percent, to $5.8 million, or 19 cents a diluted share, up from $4.4 million, or 14 cents, year-over-year. Earnings per share beat consensus of 18 cents.
The company’s American unit, Inter Parfums Inc., posted a 14.8 million net sales increase, with $117.2 million, up from $102 million in the prior-year period. Inter Parfums SA, the Paris-based subsidiary, brought in 162.3 million euros, a 10.3 percent increase from the prior-year period.
International distribution for Inter Parfums’s first Abercrombie & Fitch men’s scent, First Instinct, and Hollister duo, Wave, contributed to growth, the company said. Inter Parfums also called out Dunhill as a solid performer for the U.S. unit. From the company’s European subsidiary, Montblanc and Jimmy Choo contributed to gains.
Aside from Coach, Inter Parfums is planning a handful of new launches, including a new women’s scent under Rochas, set for winter, a new Lanvin fragrance, also scheduled for a winter release, and a new Jimmy Choo fragrance, slated for next spring, and a new Abercrombie women’s scent, according to the executives. Those plans are subject to change, Madar said.
The business is also monitoring conditions from Brexit to see if it needs to make any adjustments, Greenberg said. “We are monitoring currency trends in the U.K. and reevaluating our current pricing models. As of today, we do not expect any significant pricing changes. If the devaluation of the British pound continues, it may affect future gross margins from sales in that territory,” Greenberg said.