Despite a better-than-expected fourth quarter, the manufacturer and distributor of prestige perfumes reported that annual net sales fell 8 percent to $410.1m last year.
Most Inter Parfums sales come from the European market, with product sales in this region reaching $96.5m the fourth quarter, an increase of 16 percent on 2008.
‘Modest’ decline in European annual sales
However, European sales for 2009 fell 6 percent to $410.1m, a ‘modest’ decline, according to company chairman and CEO, Jean Madar.
“For the year as a whole, there was only a modest decline in sales, all the more respectable during the protracted global economic downturn and in the absence of major women’s fragrance launches,” he said in a statement.
European fragrance sales of the company’s second largest brand, Lanvin, were particularly strong, increasing by 4 percent due to the launch of the L’homme Sport line and reorders of the Jeanne Lanvin line, Madar said.
Meanwhile, Madar revealed that the company has several fragrance launches planned, including its first for Jimmy Choo.
Additionally, Inter Parfums recently struck a deal with consumer goods company Montblanc to produce a fragrance line, and also plans to debut a make-up collection for Burberry this year.
US sales improve in second half of 2009
The performance in the US was less encouraging, with net annual sales dropping by 19 percent to $48.2m despite sales in the fourth quarter falling just 1 percent to $17.1m.
However, Mader remained optimistic saying that the company was “extremely pleased with the turnaround in the second half of 2009.”
He attributed this improvement to new product launches for Brooks Brothers and Banana Republic, as well as fragrance launches for Bebe and New York and Company.
He added that 2010 will see more new product launches and expanded distribution, as well as the possibility of new retail agreements.
Russell Greenberg, executive vice president and chief financial officer said Inter Parfums “looks forward to resumption of growth in sales and profitability in 2010.”