Record annual sales at Interparfums boosted by strong gains in US-based operations
International fragrance company Inter Parfums, Inc. (Interparfums) announced record annual sales of $713.5 million for fiscal 2019 on Monday, reporting particularly solid progress in its U.S.-based operations, where Guess, Abercrombie & Fitch and Hollister led gains.
The company’s full-year net sales reflected a 5.6% increase (7.8% in constant currencies) from the previous year, when Interparfums reported revenues of $675.6 million.
The increase was driven by sales of the company’s U.S.-based products, which totaled $171.4 million, up 24.3% from $138.0 million in fiscal 2018. Sales of Interparfums’ Europe-based products rose 0.8% year over year, from $537.6 million to $542.1 million.
Commenting on the company’s annual sales of its U.S.-based products, Interparfums chairman and CEO Jean Madar highlighted that Guess fragrances had achieved “an extraordinary year” thanks, in large part, to the addition of two brand extensions: “1981 Los Angeles” and “Seductive Noir.”
Abercrombie & Fitch fragrances also made a solid contribution due to the introduction of the “Authentic” fragrance duo, while strong sales of Hollister fragrances were driven by brand extensions for the “Wave” and “Festival” fragrance families.
Oscar de la Renta also posted a slight rise in sales, led both by its legacy scents and the extension of its “Bella” fragrance family.
As for Interparfums’ Europe-based products, sales growth was pushed by an almost 23% increase in sales of the company’s largest brand, Montblanc, where the exceptional performance of the new “Explorer” scent and the continued popularity of the “Legend” fragrance family led gains.
Jimmy Choo, the company’s second largest brand, posted a slight increase in constant-dollar sales, but, due to the strengthening of the dollar, saw a minor decline in actual dollars, a situation that was reproduced at the Coach brand.
Sales of Karl Lagerfeld and Van Cleef & Arpels products increased 5.0% and 6.8%, respectively.
In the fourth quarter ended December 31, 2019, Interparfums’ net sales were $177.8 million, up 0.3% (1.5% in constant currencies) from $177.2 million in the same quarter in the previous year.
Sales of the company’s U.S.-based products were once again stronger than their European counterparts, posting a 14.7% rise from $42.4 million to $48.7 million. In contrast, quarterly sales of Interparfums’ European products fell 4.2%, totaling $129.1 million, compared to $134.8 million in the prior-year period.
As previously reported, Interparfums expects to achieve full-year earnings per share of $1.90. The company intends to release its full financial results, including earnings, for the fourth quarter and full fiscal year 2019 on or about Monday, March 2, 2020.
Looking forward to 2020, Madar pointed out that the year “has a more robust launch schedule on both sides of the Atlantic.”
In the U.S., Madar highlighted “a new blockbuster scent for women under the Guess banner unveiling this spring,” as well as the releases of “Canyon Escape” at Hollister and “Sky” at Anna Sui, not to mention the launch of its first fragrance under the Graff label.
In Europe, the company will be counting on new releases from Montblanc and Jimmy Choo to boost sales, as well as the launch of its first fragrance for Kate Spade New York, with whom Interparfums signed a long-term licensing deal in June of last year.
The company is maintaining its financial outlook for 2020 and still expects to report EPS of around $2.00 on record net sales of approximately $742 million.
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