Inter Parfums ups forecasts on strong Q2
The company said that sales increased 20 percent to $145.6m, compared to $121.1m in the corresponding period last year, a figure that was negatively impacted by currency exchange rates.
Negative currency translation affected the sales figure by approximately 9 percent, which meant that on a like-for-like basis, sales were up by approximately 29 percent for the quarter.
US sales look strong, against cooler Western Europe results
The figures looked even more favorable in the US market, where a stronger retail market is helping to buoy the results for many players in the industry, compared to the slower performance in the Western European retail market.
European-based product sales were up 18 percent to $125.6m, whereas growth in the smaller US market was up 37 percent to $20.0m, although this result showed slower growth compared to the same period in 2011, when US sales grew by 52 percent.
The results are preliminary which means the company is expected to announce its profit figures at the end of the month.
Strong results despite no big launches
Inter Parfums CEO Jean Madar pointed out that the exceptional results had come despite the fact that the company has not made any major launches so far in 2012, but pointed to the fact that growth had bring strong across all the brand portfolio.
“Compared to the same periods in 2011, Burberry sales rose 34 percent for the current second quarter and 21 percent for the first half on strong growth of established fragrances, including Burberry Body, which launched in late 2011,” Madar said.
As well as North America, the company reported that top line growth was also experienced in the Middle East, Asia and South America, while Eastern Europe was singled out as counterbalancing cooler results in Western Europe.
Guidance raised for 2012
“Based upon our performance thus far this year, our expectations for the second half and the strength of the dollar relative to the euro, which was 15 percent higher on June 30, 2012, as compared to June 30, 2011, we are increasing our 2012 sales guidance to $632m,” said executive VP and CFO Russell Greenberg, who also stated that the forecasts will depend on currency translations.
The company also reiterated that it is still in negotiations with Burberry over the renewing of it all-important fragrance and cosmetics licensing agreement with the British fashion company.
