Inter Parfums posts record 2Q results
NEW YORK Inter Parfums, which develops, manufactures and distributes perfumes and cosmetics, has reported record results for the second quarter.
All share and per share amounts were adjusted to reflect the retroactive effect of the 3 for 2 stock split effected on May 30, 2008. Net sales for the quarter rose 20 percent to $99.1 million from $82.8 million; at comparable foreign currency exchange rates, net sales were up 12 percent for the period.
European-based operations achieved sales of $83.9 million, a 19 percent increase compared with $70.5 million, in the same period last year. Sales by U.S.-based operations rose 23 percent to $15.2 million from $12.3 million in the same period last year; Net income was $3.8 million, compared with $3.7 million in the year-ago period; and diluted earnings per share were 12 cents in both periods.
Jean Madar, chairman of the board and chief executive officer, stated “As we previously reported, sales by European operations rose 19 percent to $83.9 million from last year’s $70.5 million. Burberry brand sales were especially strong due to the continued rollout of the latest fragrance, Burberry The Beat and the exceptional growth and staying power of Burberry Brit, which launched in 2003. Van Cleef & Arpels brand sales also contributed to the top line gains. Our U.S. operations achieved growth of 23 percent, as sales rose to $15.2 million from $12.3 million driven by the international distribution of Gap and Banana Republic fragrance and personal care products.”
Reviewing the new product pipeline by European-based operations, Mr. Madar noted, “With three major fragrance brands launching globally this year, as well as several smaller brand introductions and fragrance flankers, 2008 is proving to be one of our most ambitious years ever. Although Burberry, The Beat initially launched during the first quarter of 2008, additional geographic expansion is still underway. Jeanne Lanvin, which is previewing in Paris this summer, is scheduled to go global beginning in September. In addition, Feerie will be our first major new fragrance family under the Van Cleef & Arpels brand. We also brought the Quiksilver suncare collection to market this year and have ST Dupont Passenger, a new scent for men and women, ready for launch during the third quarter.”
He continued, “Specialty retail has become an increasingly important part of our overall business. As we announced last month, bebe stores, inc. teamed up with Inter Parfums to create and produce brand appropriate fragrance and beauty products, the first of which will be lip glosses which are expected to be in stores for the holiday season. A new bebe fragrance is on our launch schedule for next year. We are readying our first new Brooks Brothers fragrance collection for debut later this year at U.S. Brooks Brothers stores followed by international distribution in 2009. For Gap and Banana Republic, we continue to introduce new products and create variations of existing ones. Based upon results to date and plans underway, we are finding international markets to be very receptive to Gap and Banana Republic products and we have achieved excellent placement in department and specialty stores in certain international markets, including travel related retail.”
The company stated that it is on track to meet its 2008 guidance with net sales of approximately $460 million and net income of approximately $26.8 million or 87 cents per diluted share.