The company announced yesterday its projected sales for 2008, which were approximately 15.6 per cent higher than 2007's original guidelines.
However, despite this, the company has warned that the rate of growth in sales is expected to exceed that of net income in 2008.
The perfume manufacturer's US branch has recently announced a contract manufacturing agreement to make personal care products for Brooks Brothers, building on other similar contracts with leading retailers, The Gap and Banana Republic.
The company cite this shift away form mass market towards specialty retail, and the new products that will ensue, as one of the reasons behind the projected increase in sales.
"For 2008 there are a considerable number of new products and brand expansions in the works for our specialty retail partners. We are also hopeful that the first new products for Brooks Brothers' US stores will be on the market before 2008 year-end," said Jean Madar, chairman and CEO of InterParfums.
In terms of the company's European operations Madar references the launch of The Beat, the sixth Burberry fragrance family, a further two Roxy women's fragrances and a Quiksilver fragrance for men amongst the products that may help increase sales.
However, despite these positive projections in terms of sales, the company's executive vice president and chief financial officer Russel Greenberg explained that profits would not grow as fast as sales for two major reasons.
Primarily he noted that the weak US dollar was likely to negatively affect the company's Paris-based subsidiary, Inter Parfums SA, as approximately one-third of its net sales are denominated in US dollars.
Secondarily, he noted that investments in staff and related infrastructure tied to the shift into the specialty retail market could contribute to increased costs.
Inter Parfum's predictions for the future are not all bad however as, according to Greenberg, "over time, the rate of growth in profits is expected to exceed that of sales as we achieve operating leverage by allocating this increased overhead over a higher sales base".
The company's expected earnings in 2008 fall below Wall Street's expectations with Thomson Financial analysts expecting earnings of about $1.24 per share for the year, compared to the company's predictions of $1.16.
Shares in the company rose 25 cents during regular trading to close at $20.41 according to The Associated Press.