On the subject of U.S.-based operations, Mr. Madar went on to say, “The inclusion of Anna Sui fragrances in 2012 drove the 31% sales increase. International distribution of U.S. specialty retail brands, and several fragrance launches for namesake stores also factored into the top line growth. Additionally, in the final months of 2012, we began to ship Lanvin travel amenities to Sofitel Hotels.”
Burberry Exit Payment
As we previously reported, the $239 million exit payment for the Burberry license agreement was received on December 21, 2012. As a result, we expect to report a pre-tax gain on termination of license in excess of $200 million in our 2012 consolidated income statement. The tax on the gain of approximately 36% is expected to be paid on April 15, 2013.
Increases 2013 Guidance
Russell Greenberg, Executive Vice President & Chief Financial Officer stated, “Based upon sales achieved in 2012 and excluding the effect of the termination of the Burberry license, we expect to beat our current 2012 guidance of approximately $35.9 million or $1.17 per diluted share in net income attributable to Inter Parfums, Inc.”
He continued, “With strong sales momentum continuing into 2013, plus the addition of Alfred Dunhill fragrances in the spring, we are increasing our guidance for the year to approximately $480 million in net sales resulting in net income attributable to Inter Parfums, Inc. in range of $0.90 to $0.92 per diluted share. As was the case with our previous guidance of net sales of approximately $460 million and $0.86 per diluted share attributable to Inter Parfums, Inc., the new guidance factors in the impact of the transition agreement with Burberry through March 31, 2013, as well as the introduction of new scents for Jimmy Choo, Lanvin, Van Cleef & Arpels, Boucheron, Repetto, Anna Sui and bebe. Guidance assumes the dollar remains at current levels.”