Inter Parfums 'star performer' brands spritz better-than-expected full year result
Inter Parfums on Monday announced its fourth quarter and full year sales results, which it describes as “better than expected.” Net sales increased 13.9% to $134.8 million from $118.3 million, and full year net sales increased 11.2% to $521.1 million from $468.5 million, exceeding its guidance.
European-based product sales increased 12.8% in the fourth quarter and increased 11.4% for the year, and US based product sales for the fourth quarter increased 17.3% and 10.6% for the year. Inter Parfums Chairman and CEO Jean Mader said Montblanc was the “star performer,” increasing 30% in fourth quarter sales and 25% in full year sales driven by the Montblanc Legend fragrance.
He added,” Our newer brands were also contributors to the increase in net sales. Coach brand sales, which commenced in the second half of 2016, were well ahead of expectations, with $9.1 million in incremental sales for the quarter and $23.1 million for the year. Rochas brand sales rose 16% to $9.9 million in the final quarter of 2016, and contributed $32.3 million to full year sales; we began consolidating the brand’s sales when we acquired Rochas in June 2015.”
Mader also credited First Instinct, the Abercrombie & Fitch fragrance; Wave, the Hollister fragrance and Dunhill’s Icon as major contributors to the US fourth quarter sales performance. Jimmy Choo fell 9% in the fourth quarter and 2% in the year due to the absence of a new product launch, and Lanvin fell 13% in both periods.
“We have an impressive line-up of new fragrance launches rolling out in 2017 for both European and U.S. based operations with a special emphasis on new brands, including our first ever new scent under the Rochas brand, our first Coach fragrance for men, and major brand extensions for the Abercrombie & Fitch and Hollister brands,” said Mader.
Inter Parfums expects its 2016 diluted earnings per share to be at the top end of its guidance at $1.10, and it reaffirms its 2017 guidance range of $550 million to $560 million and its net income to range from $1.20 to $1.24.
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