Inter Parfums has posted a 22% increase in its sales of ongoing brand for the quarter ending in June, underlining its recovery from the loss of the Burberry cosmetic and fragrance license.
Total sales for the period increased to $118.2m, compared to a figure of $96.8m for ongoing brands in the same period last year, while the impact of foreign currency exchange rates meant that sales for the period were up 20%.
Even with the inclusion of the $20.7m in Burberry for the same period up to June 30, 2013, sales for the current quarter were still up by 0.6%.
European sales outpace North American
Breaking the figures down on a regional basis, the results did show some disparity, with sales up 31% In Europe to $94.7m, while sales in the US slipped by 4.7% to reach $23.5m.
“New product launches helped drive the 31.2% increase [in Europe] in second quarter ongoing brand sales,” said Jean Madar, Chairman and CEO of Inter Parfums.
“Montblanc brand sales were up 88% with the spring launch of the second men’s line, Emblem, in addition to the steady gains from the brand’s Legend fragrances.
Speaking about the downturn in the North America results, Madar said that this had primarily been to the take-over of the Dunhill fragrance license, which it acquired last year.
Targeting stronger Dunhill sales in North America
“U.S.-based sales declined modestly due to a challenging comparison with the prior year period when we took over the manufacture and distribution of Dunhill legacy fragrances,” he said.
“However, we are growing that brand and the others that we added in late 2012 and 2013 by launching new products and pursuing expanded distribution.”
This strategy will see the launch of a new Dunhill fragrance called Icon in the last quarter of 2014.
For the six months ending in June, total sales were up by 19.4% to reach $239.1m, reflecting increased sales of 25% in Europe, at $197.0m.
“With respect to our 2014 outlook, we continue to expect net sales of approximately $495 million, which represents nearly 15% growth of our ongoing brands,” said Russell Greenberg, Executive Vice President & Chief Financial Officer.