Sales growth at Interparfums driven by 55% rise in US
International fragrance group Interparfums reported a 3.8% increase (7.4% at comparable foreign currency exchange rates) in first-quarter net sales on Wednesday, as strong gains in the company’s US-based business was offset by slipping revenues in Europe.
For the first quarter ended March 31, 2019, the company reported overall sales of $178.2 million, up from $171.8 million in the prior-year period.
This reflected a 54.8% rise in sales in the United States, which totaled $34.5 million, compared to $22.3 million in Q1 2018, and a 3.8% decline in Europe, where sales were $143.7 million, down from $149.5 million.
The company’s progress with its US-based operations was primarily driven by the addition of Guess legacy scents, which began selling in Q2 2018. Sales of Oscar de la Renta perfumes also experienced a slight rise, thanks partly to the release of the ‘Bella Rosa’ fragrance, while revenues at the Anna Sui brand were largely in line with its performance in the equivalent period in the previous year.
“We have several major launches ahead of us, including ‘Authentic’ by Abercrombie & Fitch and ‘Mermaid’ by Anna Sui, plus brand extensions for the Guess ‘1981’ and ‘Seductive’ collections,” said Interparfums Chairman and CEO Jean Madar of the company’s upcoming US activities in a press release. “Our new initiatives are progressing, with initial Lily Aldridge fragrances making their e-commerce debut later this year, and our ultra-deluxe Graff scents unveiling late this year or early next.”
Bright spots in the company’s otherwise disappointing quarterly performance in Europe included the Montblanc and Jimmy Choo brands, which saw a 9.8% rise in net sales and a 25.8% increase in comparable sales, respectively. In the case of Montblanc, growth was driven by the launch of its ‘Explorer’ fragrance, while the release of Jimmy Choo’s ‘Floral’ line contributed to the overall popularity of the brand’s existing fragrance suite.
The company’s third largest brand, Coach, however, fared less well, registering a 22.3% decrease in sales, although Madar was keen to point out that this decline comes on the heels of a 242.1% increase in Q1 2018, catalyzed by the launch of the brand’s ‘Coach Floral’ fragrance.
Madar also highlighted that the upcoming release of Lanvin’s ‘A Girl in Capri’ is expected to reverse the 18.9% fall in sales seen by the brand in the first quarter, further specifying that the company’s next major European launch will be that of a new men’s fragrance pillar for Jimmy Choo in the fall.
Following the announcement of its first-quarter sales, the company has maintained its full-year 2019 guidance for net sales of approximately $712 million, but has raised its outlook for annual net income per diluted share from $1.85 to $1.88.
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