US operations continue to lead sales growth at Interparfums
International fragrance group Inter Parfums, Inc. (Interparfums) published its third-quarter sales results on Monday, revealing a 7.9% increase in net revenue (9.7% in constant currencies) as sales from its U.S.-based operations continue to experience accelerated growth.
In the third quarter ended September 30, 2019, the company’s net sales came to $191.2 million, up from $177.2 million in the prior-year period.
Interparfums’ European operations are by far still its biggest source of revenue, accounting for
$143.6 million of the company’s quarterly sales total, a 4.2% increase from Q3 2018’s $137.8 million.
However, sales of the fragrance group’s U.S.-based products are outstripping their European counterparts in terms of growth, registering a 20.7% year-over-year increase, from $39.4 million to $47.6 million.
Since the beginning of the year, the region has contributed $122.8 million to Interparfums’ overall revenues, up 28.6% over the same period in the previous year, when U.S. product sales were $95.5 million.
Year to date, Interparfums’ total net sales increased 7.5% to $535.7 million, up from $498.3 million in the first nine months of 2018. Sales of European based products increased 2.5% to $412.9 million, compared to $402.8 million.
Discussing the company’s third-quarter sales results in further detail in a press release, Interparfums President and CEO Jean Madar highlighted a particularly strong performance from Europe-based Montblanc, where the new Montblanc “Explorer” fragrance helped the brand to an impressive 32.2% sales rise.
Other European highlights included Jimmy Choo, which saw a 10% increase, and Rochas, which managed an 8.8% rise. News was less positive at Lanvin, which posted a 24% decline, and at Coach, where sales slipped 3.4%, although Madar pointed out that, in both cases, these decreases resulted from quarterly peaks in the previous year, following the launch of new fragrances.
The accelerated progress in the U.S. was driven by solid gains at the Guess brand, as well as a positive contribution from Oscar de la Renta, thanks in part to the successful flanker launch of its new "Bella Rosa" fragrance.
Other strong performers among Interparfums’ U.S.-based brands include Anna Sui, Abercrombie & Fitch and Hollister.
Looking to the future, Madar outlined the company's strategy for the Kate Spade brand, with whom Interparfums signed an 11-year licensing deal in June.
“We have finalized initial plans with respect to the Kate Spade brand,” he explained. “Through our majority owned subsidiary, Interparfums, SA, we will be taking over distribution of the fragrance portfolio in April 2020 and our first new scent is scheduled for a fall 2020 debut with distribution concentrated in the U.S. and Asia.”
On the subject of the company's new brands, Madar also revealed plans for an exclusive six-month launch of six women's scents for the Graff brand at British luxury department store Harrod's at the beginning of next year. This will then be followed by a global roll-out.
The CEO concluded his comments by reaffirming Interparfums' full-year 2019 financial guidance. The company continues to expect to see annual net sales of approximately $712 million and net income per diluted share of around $1.88.
Interparfums plans to release full sales and earnings results for the third quarter on November 5.
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