Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported results for the second quarter ended June 30, 2013.
Second Quarter 2013 Compared to Second Quarter 2012:
- Net sales of ongoing brands (excluding Burberry brand sales) increased 17% to $96.8 million from $82.7 million;
- Net sales including Burberry brand sales were down 19.3% to $117.5 million, compared to $145.6 million; at comparable foreign currency exchange rates, net sales declined 20.6%;
- European-based operations generated sales of ongoing brands of $72.0 million, up 15.0% from $62.8 million; including Burberry brand sales, European-based sales were down 26.2%;
- Sales by U.S.-based operations were $24.8 million, up 24.4% from $20.0 million;
- Gross margin was 54.1% of net sales compared to 60.8%;
- S, G & A expense as a percentage of net sales was 47.4% compared to 52.1%;
- Operating margin was 6.7% of net sales compared to 8.7% of net sales;
- Net income attributable to Inter Parfums, Inc. was $3.8 million compared to $6.0 million; and,
- Basic and diluted earnings per share attributable to Inter Parfums, Inc. were $0.12 compared to $0.20.
Commenting on European-based operations, Jean Madar, Chairman & CEO of Inter Parfums stated, “Our ongoing prestige brands generated impressive comparable quarter sales growth of 15%. With the 2013 launch of Flash, our second fragrance by Jimmy Choo, and continued sales of the brand’s signature scent, Jimmy Choo brand sales rose 43%. Driven by the continued strong demand for its Legend fragrances, Montblanc sales increased 20% compared to the second quarter of 2012. Lanvin sales were up 14% reflecting the continued popularity of Eclat d’Arpège and the recent launch of Lanvin Me, coupled with the steady performance of the Jeanne Lanvin line. In the second half, new product launches and rollouts are in the works for the Repetto signature scent and Place Vendôme by Boucheron.”
Regarding U.S.-based operations, Mr. Madar noted, “Sales benefited from strong consumer demand and expanded retail distribution for Anna Sui fragrances, and we expect this brand to gain further momentum following the launch of La Vie de Bohème during the third quarter. Additionally, in April 2013, our U.S.-based operations took over the manufacture and distribution of legacy Alfred Dunhill fragrances, which provided an incremental contribution to second quarter 2013 growth for our U.S. business. In the second half, we have several new products coming to market for Banana Republic and Gap, and an entirely new fragrance family launching for bebe.”Mr. Madar continued, “The remaining Burberry inventory generated $20.7 million in second quarter sales and officially concluded this chapter in our Company’s story. We move forward confident in our ability to grow our business through the introduction of new fragrances for our core brands by broadening our distribution channels and by adding new names to our brand portfolio. On the last point, we recently signed agreements with Shanghai Tang, China’s premiere luxury fashion label, and Agent Provocateur, a London-based purveyor of edgy, upscale lingerie. They are two unique brands upon which we plan to build successful fragrance enterprises that capture the aura of each. In addition to adding new brands through licensing or similar arrangements, we are also on the lookout for suitable acquisitions.”
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