The company recorded significant gains in its core business operations, pushing sales revenues up by 22 per cent to $107.8m (€81.9m), compared to $88.6m in the corresponding quarter last year.
The company said that comparing the sales figures in local currencies showed a sales revenue increase by 28 percent, estimating that negative currency translation during the quarter impacted the bottom line by an estimated $0.5m.
Favourable comparisons boost results
In Europe, sales grew by 16 per cent, from $79.4m in the second quarter of 2009 to $91.9m, while in the US sales increased by 71 per cent, up from $9.2m to $15.9m.
The rise in sales and cost reductions also had an extremely positive impact on net profits for the quarter, which were up 27 per cent, from $4.2m to $5.4m.
Company CFO and vice president Russell Greenberg did not make any reference to the favourable comparisons to last year’s weak performance, choosing instead to stress the fact that top and bottom line growth had continued.
Greenberg attributed the improved performance to, “the strength of our existing brand portfolio, the expansion of the portfolio with new high value brands, our skill in developing and rolling out new brand-appropriate products as well as the onset of a recovery in many of our global markets.”
For the first half of the financial year, the company said that sales were up 27 per cent to $227.1m, compared to $179.0m in the corresponding period last year, which represented a rise of 29 per cent in local currencies.
Net income for the six months rose by 23 per cent, up from $9.7m last year to $11.9m this year.
New launches boost sales
The company said that sales have continued to be driven by the bebe scent, which was launched last summer, with a second bebe scent due to be launched next month in the US, to build on its success.
In Europe success has been driven by the launch of the new Montblanc fragrance line, while this will be further developed by another Montblanc line to be launched next spring.
Other fragrance launches scheduled in Europe over the next six months include Marry Me by Lanvin, Paul Smith Sunshine for men and a new Paul Smith fragrance for women, together with a new men’s scent under the Van Cleef & Arpels brand.
Based on the figures for the first six months of the year, the company said it had raised its guidance for the full financial year and says that it now expects full year sales to come in at around $445m, with net income at around $24.8m.