Inter Parfums Inc. reported a sharp increase in net income for the fourth quarter.
For the quarter, the company posted a 111.2 percent income gain to $3.9 million, compared with $1.9 million in the prior-year period. Net sales for the quarter were $134.8 million, up 13.9 percent from $118.3 million. Earnings per diluted share were 13 cents, up 116.7 percent from 6 cents in the year-ago period.
For the full year, net income increased to $33.3 million from $30.4 million for 2015. Inter Parfums posted net sales of $521.1 million, up 11.2 percent year-over-year from $468.5 million. EPS was up to $1.07 from 98 cents for 2015. Western Europe increased sales by 23 percent, North America increased sales by 19 percent and Asia increased sales by 4 percent for the year. Economic problems in Russia contributed to a decrease in sales for Eastern Europe, according to the company.
U.S. sales were driven by the international launch of First Instinct, the men’s fragrance for Abercrombie & Fitch, and Wave, the fragrance duo for Hollister. Dunhill’s Icon fragrance family was also a strong performer, Madar said.
Inter Parfums has several launches slated for 2017, including its first for Rochas — Mademoiselle Rochas. The business is also rolling out its first Coach men’s fragrance, a women’s version of Abercrombie’s First Instinct and Wave 2 (a Hollister brand extension duo). Montblanc is adding a third pillar to its Legend family, called Legend Night; Jimmy Choo is planning two new launches, one for men and another for women; Lanvin’s Modern Princess is expanding internationally; a six-scent Boucheron collection is going into select distribution, and Oscar de la Renta is launching Bella Blanca.
Inter Parfums also said on Monday it agreed to sell the Balmain license, which accounted for less than 1 percent of sales, back to Balmain for $5.7 million in late 2016. The company also decided to cut the term of its Karl Lagerfeld license and will terminate it in 2024 rather than 2032.
“With regard to European based operations, our largest brand, Montblanc fragrances led the way with year-over-year sales growth of 25 percent due to the successful launch of the Legend Spirit line, as well as the solid performance of the original Legend line,” said Jean Madar, chairman and chief executive officer of Inter Parfums. “We are also seeing a sales uptick in the brand’s Lady Emblem collection in certain markets. Our top line also benefited from the inclusion and better than expected performance of our first ever Coach women’s fragrance, which generated $23 million in sales in 2016. Rochas contributed $34.6 million to full year sales; we began consolidating the brand’s sales when we acquired Rochas in June 2015. Sales by our second largest brand, Jimmy Choo, were off a modest 2 percent for the year, because of a difficult comparison to 2015 when we launched Jimmy Choo Illicit and rolled out Jimmy Choo Man.”
The company is forecasting 2017 net sales between $550 million and $560 million, with EPS of between $1.20 to $1.24 per diluted share.