Inter Parfums has released its Q2 2019 financials.
The company saw net sales increase 11.3%, totaling $166.2 million.
“Montblanc, our largest brand, had a stellar second quarter, with comparable quarter sales growth of 28.3%, attributable to the brand’s newest scent, Montblanc Explorer, as well as to the brand’s portfolio of established fragrances,” said chairman and CEO Jean Madar.
He continued: “With regard to our second largest brand, Jimmy Choo, fragrance sales declined nearly 20%, but due to the 25.8% sales increase in the first quarter, were up slightly through the first half of 2019. The popularity of our entire Coach fragrance portfolio, along with the better than expected performance of the new flanker, Coach Floral Blush, spurred the 43.8% increase in second quarter sales by our third largest brand, which more than offset the 22.3% drop in the first quarter.”
“As expected, the recent launch of A Girl in Capri, boosted Lanvin brand sales countering much of the decline in the first quarter. I am also pleased to report that two of our smaller brands showed remarkable resiliency, Van Cleef & Arpels and Karl Lagerfeld achieved second quarter sales growth of 61.3% and 115.7%, respectively, generally relating to each brand’s expanding multi-scent collections.”
Related: Inter Parfums Q1 2019 Boosted by Big Brands
“Most of the credit for the more than 20% increase in second quarter sales goes to the exceptional strength of Guess brand scents. We expect that the recent domestic debut of 1981 Los Angeles and upcoming launch of Seductive Noir will further enhance the brand’s fragrance franchise,” said Madar.
“The Abercrombie & Fitch brand also contributed to the increase in sales, helped by the exclusive Authentic duo launch in U.K. Duty Free stores in April followed by the global rollout in May. In addition, Hollister fragrances generated gains enhanced by the launch of the Wave limited edition duo, plus our first Festival brand extension, Festival Nite.”
“In last year’s second quarter, the Anna Sui, Dunhill, and Oscar de la Renta brands produced significant comparable quarter sales, making this year’s quarterly comparisons especially challenging. While Anna Sui and Oscar de la Renta are not far behind last year’s second quarter, Dunhill is expected to regain some of its lost momentum with the global launch of Century Blue later this year.”
On the Horizon
In September, the company will launch its first direct-to-consumer, e-commerce initiative with Lily Aldridge’s Haven (to be launched on the model’s website); Summit will follow in November, along with two additional fragrances in the first half of 2020. Graff will release a six-scent collection for women, launching in early 2020 with a six month exclusive at Harrod’s.
Added EVP and CFO Russell Greenberg: “We do not anticipate any sales of Kate Spade fragrance in 2019 and therefore, we continue to expect 2019 net sales to approximate $712 million resulting in net income attributable to Inter Parfums, Inc. per diluted share of $1.88. Guidance assumes the dollar remains at current levels.”