Launches for Inter Parfums will help drive 2010 sales
The company’s performance in 2009 was boosted by the fourth quarter but overall sales figures and net income were down compared to 2008 results. Net sales for the year ending December 31 dropped 8 percent to $409.5m and net income was $22.4m, 6 percent down on 2008’s figures.
2009: No major women’s fragrance launch
CFO Russell Greenberg said the year was characterized by the lack of a major woman’s fragrance launch, along with the difficult economic climate, and believes 2010 sales should be better.
Flagship fragrance brand Burberry, the success of which has been boosting the perfume manufacturer’s results for some time, has already grown with the addition of the Burberry Sport line for men and women in Europe earlier this year.
In July a cosmetics line will be added to the Burberry brand to be sold in approximately 30 shops worldwide.
The recent acquisition of Montblanc will come to fruition in spring 2011 when the company plans to launch a new fragrance under the line, although, Montblanc’s current inventory and the distribution of their legacy fragrances will be taken over by Inter Parfums mid 2010.
Early 2011 will also see the launch of the first Jimmy Choo fragrance.
Van Cleef & Arpels is also expecting new scents for both men and women and Inter Parfums is planning on expanding the Gap, bebe and Brookes Brothers lines.
Costs expected for Burberry cosmetics
Sales for 2010 are expected to reach $440m and net income $23.5m. According to Greenberg a $1.5m cost associated to the launch of the cosmetics line has been factored into the proposed net income.
“Our guidance factors in the costs associated with the development and launch of the Burberry cosmetics line which required significant investment in the first year to develop the products, build cosmetics counters, and hire and train personnel,” he said.
