Inter Parfums Q1 sales surge on Europe segment, Jimmy Choo, Montblanc and Coach brands
Fragrance maker Inter Parfums announced on Wednesday a 24% uptick in first-quarter sales to $312 million, on the back of a surge in its Europe segment and sales growth across its Jimmy Choo, Montblanc and Coach brands.
The New York-headquartered company said Europe operations grew by 26% to $230 million, with the company's three largest brands Jimmy Choo, Montblanc and Coach rising 63%, 28%, and 24%, respectively.
Sales in the region were also upheld by Inter Parfums' established, mid-size brands, including Karl Lagerfeld, Boucheron and Rochas, all of which achieved double-digit sales growth.
In the U.S., sales grew 19% to $82 million, even after a high 2022 base when first quarter sales expanded 77%. The sales increase was driven by the addition and extension of Donna Karan and DKNY to the company's portfolio and double-digit growth for Ferragamo and Oscar de la Renta, and brand extensions within established lines for Abercrombie & Fitch and MCM.
The company also noted the progressive reopening of China after lockdowns, which "buoyed" the Ferragamo and Anna Sui brands, while Guess sales remained flat on last year's high growth.
“We are strengthening our position within the fragrance industry overall and especially within the designer/prestige category," said Jean Madar, chairman and chief executive officer of Inter Parfums.
"As we announced late last year, the Lacoste fragrance business will be directed and operated by our Paris operations come January 2024.”
As a result of the double-digit sales uptick in the first quarter and the reopening of China, Inter Parfums said it is raising its full-year 2023 guidance.
"With first quarter sales further exceeding our expectations, we are raising our 2023 guidance calling for net sales of $1.25 billion up from $1.2 billion resulting in earnings per diluted share of $4.25 up from $4.00," said Michel Atwood, chief financial officer, Inter Parfums.
"Our current 2023 guidance assumes that the average dollar/euro average exchange rate remains at current levels and there is no significant resurgence of the Covid-19 pandemic.”
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