The New York-headquartered company has announced it expects net sales of $515m in 2011 and net income of approximately $29m, compared to the $455m in sales and net income of $25.5m that it has predicted for the full year 2010.
According to Inter Parfums CEO Jean Madar the guidance reflects the continued strength of the company’s brands and distribution network, as well as the improvement in the global economy.
Distribution of prestige brands
European operations, which make up a majority of the company’s sales, changes to the distribution of prestige products in the US have boosted predictions.
“With respect to European-based operations, our growth expectations for 2011 reflect the impact of our taking control over US distribution for our prestige brands,” he said.
In addition, Madar said that European operations would benefit significantly from the addition of the Montblanc brand, occurring in July 2010, which will contribute 6 months to sales in 2010 and a full year to 2011 figures.
He also highlighted new product launches and brand extensions that will help boost sales.
“Early in the year, our first fragrance under the Jimmy Choo brand will be in select distribution in the UL and the US; the signature scent will roll out globally in the spring. Also in the spring we will debut our first new Montblanc fragrance for men as well as a new men’s and women’s scent for Paul Smith fragrances,” he said.
Burberry Beauty, the cosmetics line that is to complement the fragrances from the leading brand, is also expected to contribute to sales.
In its recent 2010 third quarter results, Inter Parfums said that the new cosmetics line that was launched during quarter had made a small contribution to sales.
Madar highlighted the expansion of the line which is expected throughout 2011: “With respect to Burberry Beauty, the color cosmetics collection, additional products will be rolled out throughout the year and distribution will be expanded by approximately 30 additional retail outlets.”
US – new lines and extensions
US operations for the company are expected to be driven by new launches in the second half of the year from the newly signed Nine West and Betsey Johnson agreements as well as extensions to the Banana Republic and Gap.
The company CEO also stated that Inter Parfums will be looking for new brands in the prestige and specialty retail sector during the year.