Interparfums exceeds sales expectations in Q4
International fragrance maker Inter Parfums, Inc. (Interparfums) announced a better-than-expected 3.5% increase in its fourth-quarter sales on Monday, results which led the group to raise its full-year earnings guidance.
For the fourth quarter ended December 31, 2020, the company reported net sales of $184.0 million, compared to $177.8 million in the same period in the previous year. In constant currencies, sales were essentially flat year over year.
Q4 sales were higher than in Q3, which is historically the company’s strongest quarter.
Growth came from Interparfums’ European-based product sales, which rose 8.1% to $139.6 million, compared to $129.1 million in the prior-year period. This progress was partially offset by an 8.8% decline in U.S.-based product sales, which fell from $48.7 million to $44.4 million.
Anna Sui brand fragrances saw particularly strong growth during the quarter, posting a 62.3% rise in sales, while Coach, Jimmy Choo and Montblanc saw increases of 18.0%, 13.4% and 9.8%, respectively.
The company’s full-year sales fell 24.5% to $539.0 million, compared to record sales of $713.5 million in fiscal 2019. Annual European-based product sales fell 22.0% to $422.9 million, while U.S.-based product sales decreased 32.3%.
“Our responsiveness and the effectiveness of the measures undertaken in the spring produced better than expected sales in the second half,” explained Interparfums chairman and CEO Jean Madar. “As a result, we achieved a solid annual performance which, while down compared to 2019, highlights the quality and strength of our brand portfolio.”
Due to the stronger-than-expected sales in Q4, EVP and CFO Russell Greenberg announced that the company is upping its full-year income per share guidance for fiscal 2020 to between $1.15 and $1.20.
In light of the continued uncertainty surrounding the ongoing Covid-19 pandemic, Interparfums is maintaining its previously reported previsions for fiscal 2021, predicting annual sales in the range of $610 million to $625 million, and diluted net income per share in the range of $1.20 and $1.25.
With the exception of “Coach Dreams” and the initial roll-out of Anna Sui’s “Sky” in China and Hong Kong, the company postponed most of its new product launches in 2020, meaning that 2021 has a more crowded release schedule.
“Our 2021 new product pipeline is abundant, with new entrants for our European operations that include women’s scents for the Jimmy Choo, Kate Spade, Lanvin and Rochas brands,” said Madar. “For U.S. operations, we have fragrance duos unveiling for the Abercrombie & Fitch and Hollister brands, and women’s scents debuting for the Anna Sui, Guess, MCM, and Oscar de la Renta brands.”
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