Inter Parfums beats full year expectations and announces new scents for 2017
Inter Parfums on Monday released its fourth quarter and full year financial results, which includes $521.1 million in net sales for the year that exceeded expectations.
Net sales for the fourth quarter increased 13.9% to $134.8 million and full year net sales increased 11.2%. Fourth quarter sales by European operations increased to $99.9 million, led by Montblanc fragrances with the launch of the Legend Spirit line.
US based operations increased 17.3% to $34.9 million in the fourth quarter, driven by the launch of First Instinct, the Abercrombie & Fitch men’s scent, and Wave from Hollister. In addition, the first-ever Coach fragrance generated $23 million in sales for the year and Rochas contributed $34.6 million for the year.
Gross margin in the fourth quarter was 63.7% and consolidated gross margin was 62.7%. SG&A expenses as a percentage of net sales was 59.0%, compared to 60.4% in the previous fourth quarter, and operating income increased 26.5% to $5.4 million.
In addition, fourth quarter net income increased 111.2% to $3.9 million and rose to $0.13 per diluted share, and full year net income was $33.3 million or $1.07 per diluted share. The full year net income per diluted share also exceeded expectations for the year.
Jean Madar, Chairman & CEO of Inter Parfums, Inc. listed a number of scents launching in 2017 from Rochas, Coach, Abercrombie & Fitch and Hollister, Montblanc, Jimmy Choo, Lanvin, Boucheron and Oscar de la Renta. Rochas will launch its first new scent, Coach will debut a line of men’s fragrances, Abercrombie and Hollister will introduce women’s versions of the First Instinct and Wave scents, and several brands will expand distribution.
In 2017, Inter Parfums expects net sales to range from $550 million to $560 million and for net income to range from $1.20 to $1.24 per diluted share.
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