Inter Parfums Inc. slid to a loss in the fourth quarter, dragged down by the termination of the Burberry fragrance license in the prior year.
The company continues to attract more licenses to the fold, including Oscar de la Renta and Karl Lagerfeld.
Inter Parfums reported a net loss attributable to the company of $4.2 million, or 13 cents a diluted share, compared with net income of $99.6 million, or $3.24 a share, in the year-ago quarter. The prior-year period included a gain of $198.8 million from the termination fee of the Burberry license.
Net sales for the three- month period ended Dec. 31 declined 40.4 percent to $105.5 million, compared with $176.9 million in the year-ago quarter, when Burberry sales aggregated $88.1 million. At comparable foreign currency exchange, net sales also declined 40 percent.
Sales from the company’s European-based operations of ongoing brands gained 22 percent to $78.4 million. Including Burberry brand sales, sales in the region were down 48 percent.
The company’s sales by U.S.-based operations gained 11 percent to $27.1 million.
For the year, net income attributable to the company declined 70 percent to $39.2 million, or $1.27 a diluted share, compared with $131.1 million, or $4.26 a share, as the prior year benefited from the Burberry license termination fee. Net sales declined 13.8 percent to $563.6 million, compared with $654.1 million a year earlier.
Jean Madar, chairman and chief executive officer of Inter Parfums, said, “We are extremely enthusiastic about the outlook for our business. Sales from ongoing brands are generating excellent growth; we have recently added several important high potential brands to our portfolio; our balance sheet remains very strong; we have a global distribution network reaching over 100 countries, and our new product pipeline for 2014 is one of the most ambitious in recent years.”
The fragrance launch lineup for 2014 includes, but is not limited to, a new women’s scent for Oscar de la Renta, a men’s and a women’s scent for Karl Lagerfeld and the first men’s scent for Jimmy Choo.