Inter Parfums clocks sales, earnings lift; raises full-year guidance
Inter Parfums Inc. announced on Wednesday revenues and earnings lifted during the third quarter, prompting the fragrance company to raise its full-year guidance, despite inflation and Covid-19 restrictions in China.
The New York-headquartered company said third-quarter net sales increased 7% to $280 million, helping a sales uptick of 16% to $776 million for the first nine months of the year ending September 30.
Net income attributable to Inter Parfums rose 8% during the third quarter. Year-to-date net income surged 18% to $104 million, while diluted earnings per share rose 17% to $3.26.
“In constant euro, European operations grew sales by 3% with gains by both our largest and mid-sized brands. However, in dollars, there was a 4% decline in net sales as a result of the 15% decrease in the average euro to dollar exchange rate," said Jean Madar, chairman and CEO of Inter Parfums, when discussing the company's European based operations.
"Also in 2021, our pipeline of new product launches was exceptionally large encompassing those postponed from 2020 as well as those scheduled for that year. As we noted last month, a significant quantity of holiday gift sets that we planned to ship in the third quarter rolled into the fourth quarter.”
Outside of the continent, Inter Parfums clocked a 45% increase in sales in its U.S. operations, thanks to the contribution of new brands.
“Ferragamo, Donna Karan and DKNY accounted for 41% of the gains while organic growth from established brands, including Guess, Oscar de la Renta, Hollister, and Abercrombie & Fitch made up much of the balance," said Madar. "The increase would have been even greater had there not been hold-ups shipping holiday gift sets.”
North American sales rose 140% through the first nine months both behind the strength of the firm's brands and the desire for retailers to increase stocks in the third quarter of 2021, ahead of the holiday season.
In Western Europe and Asia year-to-date sales rose 34% and 23%, respectively. Sales in the Middle East, and Central and South America, were "robust," up 41% and 28%, respectively. Only sales in Eastern Europe declined owing to the war in Ukraine, added Madar.
Looking ahead, the company said it is once again raising its 2022 guidance ahead of its final quarter, despite "confronting inflation, Covid-19 restrictions in China, the relentless strengthening of the U.S. dollar, supply chain disruptions, and recessionary fears globally."
It now expects net sales to come in at $1.025 billion, up from our previous guidance of $1 billion. Similarly, it has raised its diluted EPS guidance to $3.40 from $3.25.
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