The company is projecting sales to hit $301 million in 2006, as opposed to the estimated $274 million turnover in 2005. On the back of this the company's management said that it believed net income would rise 16 per cent to reach $16.9 million, providing the dollar exchange rate remains constant against the Euro.
Independent financial analysts, Thomson Financial, is predicting that sales should rise to around $305 million in 2006, suggesting that the company's own estimates are conservative.
The estimates also take into account the fact that the company is also due to adopt new accounting procedures, a 'share-based payment', which will entail the added expense of stock based compensation, which will mean prior year results will not be restated.
The predicted results for 2006 follows a strong start to the year which has tailed off into a slower growth pattern. Last month the company reported that its third quarter sales growth had come in at 12 per cent, against first nine month sales growth of 21 per cent.
The company said that it had been hit by increased expenses resulting from both advertising and royalty costs. The company's premium Burberry fragrance has become a top seller, but in turn the British company has demanded a greater percentage of royalties from sales.
Looking to 2006, CEO Jean Madar said that he was looking towards sales growth leveling off in 2006, but likewise profits should excel.
"After a one year hiatus, we are looking for earnings to increase at a faster rate than sales and for 2006 to be a record year for profits as well as sales," Madar said.
On the premium fragrance side, the company said that new launches for Burberry fragrance brand to mark its 150th birthday, as well as a women's fragrances for Lanvin and Christian Lacroix and new men's scents for Paul Smith, S.T. Dupont and Nickel.