Interparfums sales drop 70% in Q2
Fragrance house Interparfums announced a 70.2 percent decline in second quarter sales on Wednesday, due to the Covid-19 pandemic.
For the second quarter ended June 30, 2020, overall net sales dropped to $49.5 million from $166.2 million.
European-based sales fell 68.6 percent, to $39.4 million during the quarter, while U.S. sales dropped 75.2 percent, to $10.1 million.
“As we expected, the impact of the Covid-19 pandemic, most notably store closures in many of the countries where our products are sold, was the primary reason for the steep decline in our second quarter sales across all our brands and geographic markets,” said Jean Madar, chairman & CEO, in a news statement.
Madar noted that since stores have gradually reopened in certain markets in May and June, company sales have began to improve, but 2020 will still continue to be a challenging year.
“We are hopeful that this trend will continue as more stores reopen and customers feel more confident about in-store shopping. However, we recognize that there will continue to be significant challenges for the remainder of 2020. In particular, the one market which shows no sign of a turnaround any time soon is travel retail, which has historically represented 15 to 20 percent of our business.”
In light of the pandemic, the international fragrance maker has postponed the launch of a number of major programs and campaigns until 2021, including projects for Kate Spade New York, Jimmy Choo, Anna Sui and Guess.
Still, earlier this month, Interparfums entered into an agreement with Divabox to acquire 25 percent of its e-commerce platform Origines-Parfums. The partnership will allow Interparfums to introduce dedicated fragrance lines and products designed to address a specific consumer demand on the Origines-Parfum’s platform.
Full results for the 2020 second quarter are expected to be announced on or around August 10, 2020.
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