Interparfums earnings rise on strong sales of Montblanc, Guess
International fragrance company Inter Parfums, Inc. (Interparfums) announced increases in its income for the third quarter and the first nine months of 2019 on Tuesday, as sales of Montblanc “Explorer” and Guess legacy fragrances drove top-line growth.
For the third quarter ended September 30, 2019, the company reported net income of $20.8 million, up 10.1% from $18.9 million, while net income per diluted share rose 10.0% from $0.60 to $0.66.
Year to date, Interparfums’ net income totaled $52.1 million ($1.64 per diluted share) a 13.8% increase from $45.7 million ($1.45 per diluted share) in the first nine months of 2018.
As previously reported, the company’s third-quarter net sales increased 7.9%, from $177.2 million to $191.2 million. This total included $143.6 million from Interparfums’ European-based operations, where sales increased 4.2%, and $47.6 million from the U.S., where sales posted an impressive year-over-year increase of 20.7%.
In the first nine months of fiscal 2019, the group’s sales were $535.7 million, up 7.5% from $498.3 million in the first nine months of 2018.
Commenting on the results in a press release, Interparfums CEO and Chairman Jean Madar broke the company’s year-to-date sales progress down by region, highlighting increases of 13.9% in North America, 4.8% in Western Europe, 8% in Asia, 25.3% in the Middle East and 4.2% in Eastern Europe.
Madar also picked out the strongest performing fragrances in Interparfums’ European and U.S.-based operations in the first nine months of fiscal 2019. Among the company’s European-based brands, its largest label, Montblanc, continues to lead the way this year, thanks in part to the success of its newest fragrance “Explorer.”
Brand extensions and its new fragrance, “Urban Hero,” also helped Jimmy Choo to a 4.5% sales increase during the nine-month period, with Coach making gains too.
As for Interparfum’s North American operations, Guess’ classic fragrances were some of the biggest sellers during the period. The brand also recently begun shipments of “1981 Los Angeles” and “Seductive Noir,” two new flankers for existing fragrances. On top of this, Oscar de La Renta has had a strong nine months thanks to its “Bella Blanca” collection, to which it recently added the “Bella Rosa” fragrance.
Looking to the future, the company’s earnings release outlined a range of new product launches and initiatives for next year. In Europe, Montblanc and Coach will introduce new women’s fragrances in the first half of 2020, with Jimmy Choo following suit in the second half.
Having signed a licensing deal with Kate Spade in June, Interparfums will not only be introducing the brand’s women’s legacy scents in spring, but will also introduce an entirely new fragrance for the label in the fall.
Elsewhere, Guess’ new “Bella Vita” fragrance will debut in the U.S. in the spring, before rolling out worldwide in the fall, and the company will also be looking to the spring launch of Anna Sui’s new “Sky” fragrance to drive the brand’s growth.
“As a result of the strength of the U.S. dollar throughout 2019, as compared to 2018, we are maintaining our 2019 net sales guidance at approximately $712 million,” concluded Russell Greenburg, EVP and CFO at Interparfums. “However, based upon improved controls over expenses and greater leverage of our fixed expenses, we are raising our earnings guidance from $1.88 per diluted share to $1.90 per diluted share.”
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