Inter Parfums, Inc. Reports Record 2012 First Quarter Results

Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported record results for the first quarter ended March 31, 2012.

First Quarter 2012 Compared to First Quarter 2011:
  • Net sales increased 24% to $165.4 million from $133.4 million; at comparable foreign currency exchange rates, net sales rose 26% for the period;
  • European-based operations generated sales of $145.2 million, up 19% from $121.6 million;
  • Sales by U.S.-based operations were up 71% to $20.2 million from $11.8 million;
  • Gross margin was 64.5% compared to 64.9%;
  • S, G & A expense as a percentage of sales was 45.3% compared to 45.8%;
  • Operating margins were 19.2% for both periods;
  • Net income attributable to Inter Parfums, Inc. increased 21.5% to $15.5 million as compared to $12.8 million; and,
  • Diluted earnings per share increased 24% to $0.51 from $0.41.

Discussing European-based operations in local currency, Jean Madar, Chairman & CEO of Inter Parfums reiterated, “Burberry brand sales were up 12% with our new Burberry Body line plus the brand’s more established collections contributing to the top line growth. Lanvin fragrance sales also increased 12% reflecting gains by the Eclat d’Arpege line, the staying power of Jeanne Lanvin and Marry Me! and the February limited distribution launch of a new men’s scent, Avant Garde. As we reported last month, Jimmy Choo and Montblanc brand sales rose 68% and 77%, respectively over last year’s first quarter spurred by 2011 product introductions. Sales of Boucheron brand products, which were not meaningful in the first half of 2011, also factored into the comparable quarter growth.”

He continued, “Later this month we will launch Jaïpur Bracelet, which pays tribute to the Boucheron brand’s jewelry heritage, and relaunch a Balmain heritage scent, Ivoire. We also have Montblanc Legend for women and a Lanvin brand extension called Jeanne Lanvin Couture debuting later this year.”

Mr. Madar once again reported, “Discussions are being actively pursued with Burberry on the creation of a new operating structure for the Burberry fragrance and beauty business.”

With regard to U.S.-based operations, Mr. Madar noted, “The 71% increase in sales was due to several factors, including new product launches such as Love Fury by Nine West, Wildbloom Vert for Banana Republic and Gap Established 1969. The inclusion of Anna Sui fragrance sales effective January 1 st was also an important contributor as were further gains by our U.S. specialty retail and designer fragrance brands in overseas markets. We have an ambitious new product line up in the works, which includes Wishes & Dreams for bebe, Miss Madison for Brooks Brothers, Wildbloom Blue for Banana Republic, and two flankers: Too Too Pretty for Betsey Johnson and Fairy Dance Secret Wish for Anna Sui.”

Russell Greenberg, Executive Vice President & Chief Financial Officer, pointed out several items pertinent to the first quarter, “Now that more than a year has passed since taking over prestige product distribution in the U.S. by Interparfums Luxury Brands, Inc., gross margins for reporting periods in 2012 should be more comparable. In the current first quarter, gains in gross margin from currency fluctuations were offset by changes in product mix. While we significantly increased our overall advertising budget for all brands to maintain the positive sales momentum and continue to grow our market share, S, G & A expense as a percent of net sales was comparable to last year’s first quarter.”

Also of note, the current first quarter:
  • benefited from $248,000 of foreign currency gains compared to $419,000 of foreign currency losses in the first quarter of 2011, and
  • was subject to an income tax rate of 36% compared to 33% for the prior year’s first quarter.

Affirms 2012 Guidance

Mr. Greenberg concluded, “We recognize that our first quarter performance was well above analysts’ expectations, however, such results were in line with management’s internal expectations. We intend to provide a guidance update when we announce a resolution regarding our Burberry license. Therefore at this point in time, we are reaffirming our current guidance, which calls for sales of approximately $625.0 million, with resulting net income attributable to Inter Parfums, Inc. of approximately $35.7 million or $1.16 per diluted share.”


The Company’s regular quarterly cash dividend of $0.08 per share will be payable on July 13, 2012 to shareholders of record on June 29, 2012.

Conference Call

Management will conduct a conference call to discuss financial results and business developments at 11:00 am ET on Thursday, May 10, 2012. Interested parties may participate in the call by dialing 201 493-6739; please call in 10 minutes before the conference call is scheduled to begin and ask for the Inter Parfums call. The conference call will also be broadcast live over the Internet. To listen to the live call, please go to and click on the Investor Relations section. Please go to the website at least 15 minutes early to register, and download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at Inter Parfums’ website. We suggest listeners use Microsoft Explorer as their browser.

In the nearly 30 years since its founding, Inter Parfums, Inc. has been selected as the fragrance and beauty partner for a growing list of prestige brands that include Burberry, Lanvin, Jimmy Choo, Van Cleef & Arpels, Montblanc, Paul Smith, Boucheron, S.T. Dupont, Balmain and Repetto. Inter Parfums is also the fragrance and beauty partner for specialty retail and designer brands such as Gap, Banana Republic, Brooks Brothers, bebe, Betsey Johnson, Nine West and Anna Sui. Inter Parfums is known for innovation, quality and its ability to capture the genetic code of each brand in the products it develops, manufactures and distributes in over 120 countries worldwide.

Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. In some cases you can identify forward-looking statements by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will" and "would" or similar words. You should not rely on forward-looking statements because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and "Risk Factors" in Inter Parfums' annual report on Form 10-K for the fiscal year ended December 31, 2011 and the reports Inter Parfums files from time to time with the Securities and Exchange Commission. Inter Parfums does not intend to and undertakes no duty to update the information contained in this press release.


(In thousands except per share data)

Three months ended

March 31,
2012   2011
Net sales $ 165,368 $ 133,363
Cost of sales   58,690     46,772  
Gross margin 106,678 86,591
Selling, general and administrative expenses   74,924     61,049  
Income from operations   31,754     25,542  
Other expenses (income):
Interest expense 362 440
(Gain) loss on foreign currency 248 (419 )
Interest income   (524 )   (317 )
  86     (296 )
Income before income taxes 31,668 25,838
Income taxes   11,414     8,498  
Net income 20,254 17,340
Less: Net income attributable to the noncontrolling interest   4,757     4,581  
Net income attributable to Inter Parfums, Inc. $ 15,497   $ 12,759  
Earnings per share:
Net income attributable to Inter Parfums, Inc. common shareholders:
Basic $ 0.51 $ 0. 42
Diluted $ 0.51   $ 0. 41  
Weighted average number of shares outstanding:
Basic 30,551 30,474
Diluted   30,686     30,634  
Dividends declared per share $ 0.08   $ 0. 08  


(In thousands except share and per share data)


March 31,

December 31,


Current assets:
Cash and cash equivalents $ 27,410 $ 35,856
Accounts receivable, net 164,030 175,223
Inventories 183,932 164,077
Receivables, other 2,009 3,258
Other current assets 5,807 4,258
Income taxes receivable 56 1,404
Deferred tax assets   7,338     7,270  
Total current assets 390,582 391,346
Equipment and leasehold improvements, net 17,002 14,525
Trademarks, licenses and other intangible assets, net 109,585 105,750
Goodwill 2,847 2,763
Other assets   2,161     1,650  
Total assets $ 522,177   $ 516,034  
Current liabilities:
Loans payable – banks $ 13,599 $ 11,826
Current portion of long-term debt 3,148 4,480
Accounts payable - trade 96,936 112,726
Accrued expenses 43,265 52,042
Income taxes payable 4,255 2,099
Dividends payable   2,444     2,443  
Total current liabilities   163,647     185,616  
Long-term debt, less current portion   --     --  
Deferred tax liability   6,169     6,068  
Inter Parfums, Inc. shareholders’ equity:
Preferred stock, $0.001 par value. Authorized 1,000,000 shares; none issued

Common stock, $0.001 par. Authorized 100,000,000 shares; outstanding 30,541,506 and 30,445,881 shares at March 31, 2012 and December 31, 2011, respectively


Additional paid-in capital 51,264 50,883
Retained earnings 241,259 228,164
Accumulated other comprehensive income 14,938 7,747
Treasury stock, at cost, 10,009,492 common shares at March 31, 2012 and December 31, 2011  




Total Inter Parfums, Inc. shareholders’ equity 273,341 252,674
Noncontrolling interest   79,020     71,676  
Total equity   352,361     324,350  
Total liabilities and equity $ 522,177   $ 516,034  

Copyright Business Wire 2010

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