Inter Parfums says 2023 sales to surpass $1.1 billion
Global fragrance maker Inter Parfums announced on Monday it now expects 2023 sales to reach $1.11 billion, due to the company's strong brand portfolio and anticipated new product launches in the new year.
The New York-headquartered company said the sales forecast predicted represents an 8% increase on the prior year, resulting in earnings per diluted share of $3.70, up 9% on 2022.
Inter Parfums' guidance announcement comes after the scent company said it expects 2022 sales to reach $1.025 billion, representing $3.40 in earnings per diluted share.
The company said both guidance figures assumes that the average dollar/euro exchange rate will remain at current levels and there is no significant resurgence of the Covid-19 pandemic.
“Building upon the record sales we are projecting in 2022, the increase in 2023 that we anticipate is due to a number of factors," said Jean Madar, chairman and chief executive officer of Inter Parfums, Inc.
"The strength of our brand portfolio and our global distribution network have been an engine for internal growth in the past, and we expect the same in the future. We will also ship Donna Karan and DKNY products for the full year versus only five months in 2022. Finally, new product launches, primarily brand extensions and flankers, for our largest as well as our mid-sized brands, should once again be catalysts for sustained top line growth.
Looking ahead, the company also expects continued growth in its travel retail business, "as well as a more streamlined and reliable supply chain."
It also flagged "modest price increases" that it plans to make in the beginning of 2023.
"While there has been recent news of a loosening of restrictions in China, our 2023 estimates do not factor in any of such benefits, because the current measures appear to be modest, and the timing of a resumption of business as usual is incalculable. We will continue to monitor for any changes and plan to revise our guidance accordingly," added Madar.
In its most recent trading update early November, Inter Parfums said net sales increased 7% to $280 million, leading to a sales uptick of 16% to $776 million for the first nine months of the year ending September 30.
Net income attributable to Inter Parfums rose 8% during the third quarter. Year-to-date net income surged 18% to $104 million, while diluted earnings per share rose 17% to $3.26, the company said at the time of reporting.
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