Inter Parfums posts big quarterly sales hike, ups outlook
The interim report, which included only the global sales results for the quarter ending March 31st, showed that global sales grew by 29.3 percent to $213.8m, compared to $165.4m in the corresponding period last year.
Likewise, this sales figure was only minimally impacted by foreign currency exchange rates, which were up 29.4 percent when this translation was taken into account.
The company said that its European sales, which are the mainstay of the US-based business, were up 34.4 percent to $195.1m, compared to $145.2m in the corresponding period last year.
US sales fall during the quarter
In contrast to this strong performance the US sales fell by 7.6 percent, which the company said was mainly down to a difficult comparison period for the corresponding period in the previous year, when sales had grown by 71 percent.
“Our major ongoing brands performed very well in the first quarter of 2013. Jimmy Choo led the way with year-over-year sales growth of over 50 per cent driven in part by the very promising start for Flash, the brand’s second fragrance line which we launched in January,” said CEO Jean Madar, while discussing the European results.
He went on to note that the Eclat d’Aperge and Lanvin brands had also continued to contribute to the sales growth, while the results for the company’s leading Burberry brand were up 53 percent.
This is the final month that the company will hold the licensing agreement for the Burberry brand, as Burberry is taking the production and manufacturing of the brand in-house.
Last quarter to include Burberry results
Last July Burberry confirmed that it was buying back the rights to the agreement for €181m ($220m), a sum that has enabled Inter Parfums to reinvest in the acquisition of Alfred Dunhill fragrances.
However, it is still believed that the business will be impacted in the short- to mid-term given that Burberry sales have traditionally made up approximately 60 percent of Inter Parfums’ annual revenues.
Looking ahead to the rest of the year, the company said that the strong first quarter means it is raising its outlook for the 2013 financial year, from $480m to $520m, although this will be well down on full year 2012 sales of $654m.