Coach’s fragrance launch drove gains at Inter Parfums Inc. for the third quarter.
Net income was up 14.2 percent year-over-year to $16.2 million from $14.2 million for the third quarter. Net sales were $157.6 million, a 13.4 percent increase from $138.9 million in the prior-year period. Sales in the business’ European subsidiary were up 12 percent to $123.4 million from $110.1 million in the prior-year period. Earnings per diluted share increased 13 percent to 52 cents from 46 cents.
“We achieved good growth from both our European and U.S. operations during the third quarter,” said Inter Parfums chairman and chief executive officer Jean Madar. “For our European operations, sales of our first Coach scent for women exceeded expectations, generating $13.8 million in incremental sales. Montblanc, our largest brand, performed exceptionally well, generating sales of $32.9 million, an 11 percent increase compared with last year’s third quarter with most of the credit going to the enduring popularity of the Legend fragrance family. Rochas fragrance sales more than doubled to $7 million from last year’s third quarter thanks to the loyal following of the brand’s two legacy fragrances, Eau de Rochas and Rochas Man in Spain and France. Our Van Cleef & Arpels Collection Extraordinaire also contributed to our top-line growth as did the Lanvin’s Modern Princess line, which was in limited distribution in France during the third quarter. As previously reported, the 2015 launch of Illicit for our second-largest brand, Jimmy Choo, made for a difficult comparison with brand sales in the current third quarter. But year-to-date, brand sales are running about equal to those of the same period of last year.”
“Both new and established brands contributed to the 19 percent sales increase by our U.S.-based operations,” Madar continued. “The new Abercrombie & Fitch men’s scent, First Instinct, and the Hollister fragrance duo, Wave, have been a great success so far, and with broader geographic distribution and brand extensions, we look forward to building these brands into important fragrance franchises. As previously reported, Dunhill has been a consistent growth driver, due in great part to the strength of the brand’s expanding Icon fragrance family. Year-to-date, our three largest markets Western Europe, North America and Asia, have performed quite nicely, achieving sales gains of 25.7 percent, 18.3 percent and 6.1 percent, respectively, compared to the same period one year earlier. However, we continued to feel the effect of negative market conditions in Eastern Europe, the Middle East and China.”
Inter Parfums predicts full-year net sales will be towards the high-end of the company’s guidance of $500 million to $510 million, with net income at the higher end of $1.05 to $1.10 per diluted share.