Inter Parfums announces flat quarterly profits
Parfums announcing flat quarterly results on the back of forecasts
for falling results at rival Parlux.
Inter Parfums said that its net income was $3.2m for its second quarter, which was largely flat compared to last year, despite the fact that its net sales for the period rose 15 per cent on the previous year to reach $70.3m.
Although the sales figures were ahead of analysts' predictions, the quarterly income was hit by a hike in the cost of sales as well as a significant increase in the cost of selling and administrative charges.
CEO Jean Madar said that sales increases had been mainly achieved through its six largest prestige brands, earmarking a 14 per cent increase in its European based product sales for the quarter compared to the previous year.
"Much of the increase was fueled by the initial launch of Burberry London for women," he said. "Palu Smith fragrances also performed well, notably the original Pal Smith fragrance, Paul Smith Extreme and Paul Smith Floral."
Madar also said that the new Nickel men's fragrance, Eau Maximum, had proved to be particularly successful in France.
Meanwhile sales were up 17 per cent in the US for the quarter, primarily due to increased stocks of both its fragrance and personal care lines at Banana Republic and Gap.
For the full year the company said that it was sticking to its guidelines, expecting 2006 net sales of approximately $301m and net income in the region of $16.9m on the strength of future product launches and continued sales build-up.
The new product launches will include The Banana Republic Discover Collection, a line of five fragrance that it expected to hit US stores in September.
Looking ahead to 2007, Madar said "We believe that our specialty retail programs of 2007 will play a major part in our anticipated growth. We have and we intend to continue to make necessary staff additions to accommodate our growth.
"Our New York offices are undergoing renovation, including a 2,000 square foot expansion. We have also made major MIS upgrades that, among other things, have enhanced our inventory management capabilities."