Inter Parfums Inc.’s sales and profits were up for the first quarter, driven by legacy scents.
Net income was $13.4 million, up from $7.3 million in the prior-year period. Net sales were $143.1 million, up 28.3 percent year-over-year from $111.5 million. Net earnings per diluted share were 43 cents, up from 24 cents in the prior-year period.
Sales were driven by the company’s “best-performing legacy scents,” according to chief executive officer and chairman Jean Madar. Jimmy Choo saw a 57 percent growth in sales from legacy and new fragrances; Lanvin sales were up 46 percent, driven in part by Éclat d’Arpège and the launch of Modern Princess; Rochas sales were up 43 percent from existing fragrances and initial sales of Mademoiselle Rochas.
“Our Jimmy Choo signature scent for women, which debuted in 2011, and Jimmy Choo Man, which launched in 2014, have enjoyed remarkable staying power,” Madar said. “Building on these very strong fragrance family trees, we successfully launched Jimmy Choo L’Eau for women and Jimmy Choo Man Ice during the current first quarter.”
Madar also singled out Coach, which contributed $8 million to first-quarter sales with the rollout of its signature scent. The men’s Coach fragrance is coming for fall 2017, according to the company.
Montblanc sales were down 10 percent, which Inter Parfums Inc. said was because of a difficult comparison to the prior-year period (in which there was a 29 percent jump in sales with the launch of Montblanc Legend Spirit). At that brand, Inter Parfums is planning the launch of Montblanc Legend Night for the end of the year.
Later this year, the company is planning on launching a multiscent collection from Boucheron, a fragrance duo from Karl Lagerfeld, a brand extension on Lanvin’s Éclat d’Arpège and another fragrance for Van Cleef & Arpels Collection Extraordinaire line.
For the U.S. side of the business, Abercrombie & Fitch and Hollister fragrances drove growth. Anna Sui turned around operations in China, Madar noted.
“During the economic downturn in China, a major market for [Anna Sui], we maintained our strong advertising and marketing commitment to Anna Sui, which is being rewarded as the Chinese economy improves,” Madar said. “The brand’s growing popularity in other Asian countries is contributing to the upturn in Anna Sui fragrance sales, which we are exploiting with a major new product launch for the brand later this year with distribution concentrated across Asia.”
Looking forward, Inter Parfums is predicting between $550 million and $560 million in net sales, and net income to hover between $1.20 and $1.24 per diluted share.