Inter Parfums Inc. said Monday that net sales increased 18.6 percent to $125.1 million for the three months ended Dec. 31, compared with $105.5 million for the same period in 2013.
At comparable exchange rates, consolidated fourth quarter net sales increased by 24.9 percent. Excluding the discontinued Burberry license, net sales from ongoing brands rose 15.3 percent to $499.3 million for the full year from $433.1 million the prior year. The consolidated net sales for 2014 from ongoing brands increased 15.6 percent, when calculated with comparable foreign exchange rates.
Jean Madar, chairman and chief executive officer of Inter Parfums discussed the company’s European-based operations. “For the final quarter, our three largest brands Montblanc, Lanvin and Jimmy Choo performed exceptionally, with sales up 14 percent, 23.9 percent and 49.6 percent, respectively. The growth in Montblanc and Lanvin brand sales came from established scents, while the launch and rollout of Jimmy Choo Man drove the increase in brand sales. The introduction of our first Karl Lagerfeld fragrances for men and women over the summer also contributed $3.5 million of incremental sales. Of special note, Montblanc emerged as our largest brand by the close of 2014.”
Related Articles
Madar added, “For the full year, ongoing brand sales for European operations were ahead across all regions. Our three largest markets, Western Europe, North America and Asia turned in sales growth of 23.9 percent, 18.2 percent and 20.9 percent, respectively, but even smaller markets like the South America, the Middle East and Eastern Europe achieved double digit sales growth for the year.
“The recent additions of Oscar de la Renta and Agent Provocateur to our U.S. operations contributed to the 16.4 percent increase in fourth quarter sales. Oscar de la Renta brand sales were solely legacy scents, as the launch of our first fragrance for the brand is scheduled for later this spring. The introduction of Fatale and Fatale Pink in the second half of the year spurred Agent Provocateur sales.”
Russell Greenberg, executive vice president and chief financial officer, added, “since announcing our 2015 guidance on Nov. 17, the U.S. dollar has continued to strengthen vis à vis the euro. While the outlook for our business remains strong and we have an ambitious new product launch schedule planned for 2015, currency valuation has forced us to reduce our 2015 sales guidance to approximately $480 million from $500 million. At the same time, the current foreign currency dynamic should have a positive impact on 2015 net income attributable to Inter Parfums. When we announce our 2014 fourth quarter and full year results in March, we expect to revise the range for 2015 net income attributable to Inter Parfums upward from our previous guidance of $0.95 to $0.98 per diluted share.”