Raises 2023 Sales
Guidance
Inter Parfums, Inc. (NASDAQ GS: IPAR) (“Inter Parfums” or the
“Company”) today announced that for the three months ended June 30,
2023, net sales rose to $309 million, up 26% from $245 million, in
the second quarter of 2022.
At comparable foreign currency exchange rates, consolidated 2023
second quarter net sales increased 25% compared to the second
quarter of 2022.
Of note, the average dollar/euro exchange rate for the current
second quarter was 1.09 compared to 1.06 in the second quarter of
2022, while for the first half of 2023, the average dollar/euro
exchange rate was 1.08 compared to 1.09 in the first half of 2022,
leading to a positive 1.3% foreign exchange impact for the quarter
and a negative 0.5% for the first half.
Net Sales:
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
% Change
2023
2022
% Change
($ in millions)
European based product sales
$198
$166
19%
$428
$348
23%
United States based product sales
111
79
42%
193
147
31%
$309
$245
26%
$621
$495
25%
“We are very pleased to have achieved another record second
quarter sales,” said Jean Madar, Chairman & Chief Executive
Officer of Inter Parfums.
He continued, “The 19% increase in net sales by our European
based operations was driven by our three largest brands, Coach,
Jimmy Choo, and Montblanc, which grew sales by 28%, 21% and 16%,
respectively. Also contributing to the top line gains were our
fragrance “jewels,” Van Cleef & Arpels and Boucheron, as well
as fashion houses, Rochas and Kate Spade.
“The strength in the overall market, coupled with this year’s
launches and brand extensions, including Jimmy Choo Rose Passion,
Montblanc Signature Absolue and Explorer Platinum, Kate Spade
Chérie, Coach Green and Love, and Rochas Eau de Rochas Citron
Soleil and Girl Life, resulted in year-to-date sales gains of 23%
for our European based operations.
“With respect to our U.S. based operations, we delivered a solid
42% growth during the second quarter with strong performance across
most key brands in the portfolio.
“The most gratifying news comes from the continued success of
GUESS fragrances which performed exceedingly well during the
quarter across all geographies and was up 30% from the second
quarter of 2022. This is driven by the sales of our newest pillars,
Seductive Blue and Uomo Acqua. Second quarter GUESS brand sales
more than made up for the first quarter logjam we experienced due
to the ERP implementation. Of note, the significant growth in the
quarter builds upon the 39% sales increase we reported for the
second quarter of 2022.
“We also had strong sales of Ferragamo fragrances, which we have
recently enriched with sister scents for the Signorina and Storie
di Seta collections. Oscar de la Renta also performed strongly
during the quarter.”
Mr. Madar went on to say, “Donna Karan/DKNY brands are also
another big source of pride. They have climbed to become our second
largest U.S. based brand in just one-year under our expertise. We
have devoted the resources necessary to revitalize the fragrance
line-up for this brand duo, including extensive advertising and
promotional programs, while also establishing an inventory for
shipment-ready finished goods to strengthen our relationships with
our trusted distributors and retailers.”
Looking into the second half of 2023, Mr. Madar noted, “Once
again, gift sets will play an important role in our consolidated
third quarter sales. We expect to release several extensions with a
strong emphasis on the Donna Karan/DKNY, Ferragamo and GUESS brands
for U.S. based operations.
“For European based operations, we have a pipeline of releases,
including new entries for the Karl Lagerfeld Les Parfums Matières
collection and the debut of a new member of the Van Cleef &
Arpels Collection Extraordinaire.
“Additionally, we will begin distributing the very popular
fragrance, Abercrombie & Fitch Fierce in select markets.
“As planned, the Chinese market has not yet recovered its
vitality and remains slow, however, the overall impact is marginal,
and factored into our second half forecast. We expect a more upbeat
market in 2024 for China.”
Increases 2023 Sales Guidance:
Michel Atwood, Chief Financial Officer noted, “The healthy
fragrance market and ongoing consumer demand, combined with most of
our brands outperforming and gaining market share, enables us to
again raise our 2023 net sales guidance to $1.3 billion, up from
$1.25 billion, originally communicated in April 2023.
“The increase in our sales guidance does not yet include initial
sales of the newly acquired fragrance licenses, Roberto Cavalli and
Lacoste. Robert Cavalli fragrances are expected to start shipping
in November/December 2023 and Lacoste fragrances are expected to
kick-off in 2024.
“We will revise our guidance for net income per diluted share
when we release our full second quarter results on August 8, 2023.
Guidance assumes that the average dollar/euro exchange rate remains
at current levels, and there is no significant resurgence of the
COVID-19 pandemic.”
About Inter Parfums, Inc.:
Operating in the global fragrance business since 1982, Inter
Parfums, Inc. produces and distributes a wide array of prestige
fragrance and fragrance-related products under license agreements
with brand owners. The Company manages its business in two
operating segments, European based operations, through its 72%
owned subsidiary, Interparfums SA, and United States based
operations.
The portfolio of prestige brands includes Abercrombie &
Fitch, Anna Sui, Boucheron, Coach, Donna Karan, DKNY, Ferragamo,
Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade,
MCM, Moncler, Montblanc, Oscar de la Renta, Roberto Cavalli,
Ungaro, and Van Cleef & Arpels, whose products are distributed
in over 120 countries around the world through an extensive and
diverse network of distributors. Inter Parfums, Inc. is also the
registered owner of several trademarks including Lanvin and
Rochas.
Forward-Looking Statements:
Statements in this release which are not historical in nature
are forward-looking statements. Although we believe that our plans,
intentions and expectations reflected in such forward-looking
statements are reasonable, we can give no assurance that such
plans, intentions or expectations will be achieved. In some cases,
you can identify forward-looking statements by forward-looking
words such as "anticipate," "believe," "could," "estimate,"
"expect," "intend," "may," "should," "will," and "would," or
similar words. You should not rely on forward-looking statements,
because actual events or results may differ materially from those
indicated by these forward-looking statements as a result of a
number of important factors. These factors include, but are not
limited to, the risks and uncertainties discussed under the
headings “Forward Looking Statements” and "Risk Factors" in Inter
Parfums' annual report on Form 10-K for the fiscal year ended
December 31, 2022 and the reports Inter Parfums files from time to
time with the Securities and Exchange Commission. Inter Parfums
does not intend to and undertakes no duty to update the information
contained in this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230724485101/en/
Inter Parfums, Inc. Michel Atwood Chief Financial Officer (212)
983-2640 www.interparfumsinc.com
or
The Equity Group Inc. Investor Relations Counsel Karin Daly
(212) 836-9623 / kdaly@equityny.com Linda Latman (212) 836-9609 /
llatman@equityny.com www.theequitygroup.com
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