Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported results for the third quarter ended September 30, 2013.
Third Quarter 2013 Compared to Third Quarter 2012:
- Net sales of ongoing brands (excluding Burberry brand sales) increased 45.0% to $126.8 million from $87.2 million;
- Net sales including Burberry brand sales were down 23.8% to $126.8 million, compared to $166.3 million; at comparable foreign currency exchange rates, net sales declined 23.9%;
- European-based operations generated sales of ongoing brands of $98.1 million, up 41.2% from $69.5 million; including Burberry brand sales, European-based sales were down 34.0%;
- Sales by U.S.-based operations were $28.7 million, up 62.3% from $17.7 million;
- Gross margin was 55.2% of net sales compared to 60.8%;
- S, G & A expense as a percentage of net sales was 43.7% compared to 47.5%;
- Operating margin was 11.6% of net sales compared to 13.3% of net sales;
- Net income attributable to Inter Parfums, Inc. was $7.9 million compared to $10.0 million; and,
- Diluted earnings per share attributable to Inter Parfums, Inc. were $0.25 compared to $0.33.
Regarding European-based operations, Jean Madar, Chairman & CEO of Inter Parfums commented, “Our ongoing brands, especially our three largest, Montblanc, Jimmy Choo and Lanvin, produced another quarter of very strong growth. Montblanc Legend fragrances lead Montblanc to a 57% increase in brand sales, while Flash, a women’s fragrance launched early in the year, coupled with ongoing demand for its signature scent, drove sales growth of 56% for Jimmy Choo fragrances. Lanvin sales rose 11% due to the staying power of Eclat d’Arpège, sustained demand of Jeanne Lanvin, and the successful spring launch of Lanvin Me. Adding to the impressive growth of our European business were the recent launches of the Repetto signature scent, as well as Place Vendôme from Boucheron, both of which exceeded our expectations and were meaningful contributors to our performance during the third quarter.”
Discussing U.S.-based operations, Mr. Madar noted, “As we reported last month, Anna Sui sales were boosted by the rollout of La Vie de Bohème this past summer and continuing brand sales which were especially strong in Asia. Sales of Alfred Dunhill legacy fragrances, which commenced in April 2013, as well as initial sales of Agent Provocateur legacy scents beginning in August also contributed to comparable quarter sales growth. In addition, we brought new fragrances for our specialty retail brands to market: Banana Republic’s Wildbloom Rouge and Wildblue Noir and bebe Nouveau.”Mr. Madar continued, “Our new product pipeline for 2014 points to one of our most ambitious launch years ever, with new scents in the works for Oscar de la Renta, Alfred Dunhill, Agent Provocateur, Karl Lagerfeld and Shanghai Tang; all of these new licensed brands were added over the past 13 months. We are also unveiling new fragrances for the Montblanc, Balmain, S.T. Dupont, Banana Republic and Brooks Brothers brands. Add to this our expansion initiatives in Asia, a full year of sales of legacy scents for Oscar de la Renta, Agent Provocateur and Alfred Dunhill, our continued search for additional brands, and our very strong balance sheet, and our future looks promising.”