Inter Parfums, Inc. Reports 2016 Third Quarter Results

Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported results for the third quarter ended September 30, 2016.

Third Quarter 2016 Compared to Third Quarter 2015:
  • Net sales were $157.6 million, up 13.4% from $138.9 million; at comparable foreign currency exchange rates, net sales increased 14.8%;
  • Sales by European based operations rose 12.0% to $123.4 million from $110.1 million; at comparable foreign currency exchange rates, net sales increased 13.7%;
  • U.S. based operations generated net sales of $34.2 million, up 19.0% from $28.8 million;
  • Gross margin was 60.2% of net sales compared to 61.8%;
  • S,G&A expense as a percentage of net sales was 39.7% compared to 41.9%;
  • Operating income rose 16.9% to $32.3 million from $27.6 million;
  • Net income attributable to Inter Parfums, Inc. rose 14.2% to $16.2 million compared to $14.2 million; and,
  • Net income attributable to Inter Parfums, Inc. per diluted share rose 13.0% to $0.52 from $0.46.

Jean Madar, Chairman & CEO of Inter Parfums, Inc. noted, "We achieved good growth from both our European and U.S. operations during the third quarter. For our European operations, sales of our first Coach scent for women exceeded expectations, generating $13.8 million in incremental sales. Montblanc, our largest brand, performed exceptionally well, generating sales of $32.9 million, an 11% increase compared with last year's third quarter with most of the credit going to the enduring popularity of the Legend fragrance family. Rochas fragrance sales more than doubled to $7.0 million from last year's third quarter thanks to the loyal following of the brand's two legacy fragrances, Eau de Rochas and Rochas Man in Spain and France. Our Van Cleef & Arpels Collection Extraordinaire also contributed to our top line growth as did the Lanvin's Modern Princess line, which was in limited distribution in France during the third quarter. As previously reported, the 2015 launch of Illicit for our second largest brand, Jimmy Choo, made for a difficult comparison with brand sales in the current third quarter. However, year-to-date, brand sales are running about equal to those of the same period of last year."

Mr. Madar pointed out, "Both new and established brands contributed to the 19% sales increase by our U.S. based operations. The new Abercrombie & Fitch men's scent, First Instinct, and the Hollister fragrance duo, Wave, have been a great success so far, and with broader geographic distribution and brand extensions, we look forward to building these brands into important fragrance franchises. As previously reported, Dunhill has been a consistent growth driver, due in great part to the strength of the brand's expanding Icon fragrance family."

Mr. Madar closed by saying, "Year-to-date, our three largest markets Western Europe, North America and Asia, have performed quite nicely, achieving sales gains of 25.7%, 18.3% and 6.1%, respectively, compared to the same period one year earlier. However, we continued to feel the effect of negative market conditions in Eastern Europe, the Middle East and China."

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