Inter Parfums reports strong Q3 and reaffirms forecasts

The company said that net sales grew by 14 percent, or 9 percent factoring in currency exchange, to reach $102.3m, while net income grew 22 percent to reach $5.7m. For the nine month period sales were up 17 percent, or 12 percent factoring in currency exchange, to $270.2m, while net profits grew 24 percent to reach $15.2m. Inter Parfums said that the results gave it reason to reaffirm its 2007 forecasts, underlining full year sales of $378m and net profits of $21.5m. US sales steady ​ Sales for the US division, which have centered around the supply of personal care ranges to key US fashion retailers Gap and Banana Republic, grew by 4 percent to reach $14.2m. This sales growth paled in comparison to the much stronger performance from the company's European division, but CEO Jean Madar pointed out that the result was still strong given that the year-on-year comparison took into account exceptional growth for the same period for 2006. Indeed, in last year's third quarter, US sales grew 64 percent, primarily on the back of the first shipment of the new personal care range to Banana Republic stores across North America. "The current third quarter sales reflect the staged rollout of new products to additional Gap stores, as well as new product launches for Banana Republic and Gap stores,"​ said Madar. Further product lines were added to the Banana Republic ranges, including two new fragrances for the Discover Collection, as well as body wash, body cream and shower gel companion products. The company also stressed its belief that US holiday sales will help to fuel further growth in the fourth quarter, particularly in light of the recent rollout of the high end special edition Individuals fragrance collection for Gap, together with a number of dedicated seasonal products to be released for Gap and Banana Republic during the third quarter. European fragrance sales boom ​ The European division, which concentrates on fashion brand fragrances, grew sales by 16 per cent to $88.1m, fuelled by the launch of Roxy and Paul Smith Rose fragrances, together with increasing sales from the existing Van Cleef & Arpels fragrance. Looking ahead to 2008, Madar said that 2008 would be the most ambitious year to date for the European operations, with a number of high profile launches expected in the course of the year. Those launches include a new Burberry fragrance - the sixth in the range, two more Roxy women's fragrances, a Quicksilver fragrance for men and a Quicksilver sun care range. There are also a number of fragrances planned for the Van Cleef & Arpels, Lanvin, Paul Smith and S.T. Dupont brands.