Inter Parfums third quarter beats expectations
third quarter 2006 results, as net sales rose 19 per cent, with
established fragrance brand Lanvin being singled out for a
particularly strong performance.
The company said that overall its net sales grew to $89.7m for the quarter, up from $75.4m for the same period last year - a rise of 13 per cent at comparable foreign currency exchange rates.
Net income for the period grew to $4.6m, compared to $3.8m the previous year.
Dividing this figure up, sales for the company's European operations, which represent prestige fragrance brands, were $76.1m, a rise of 13 per cent on the same quarter in 2005.
Sales for the company's US division, which is involved in specialty retail and mass market products were up a significant 64 per cent, to reach $13.6m.
Sales for the first nine months of 2006 increased 11 per cent to $230.9 million, up from $207.9 million one year earlier. Year-to-date net income was $12.3 million compared to $11.4 million in the first nine months of 2005.
CEO Jean Madar said that in particular the quarter's result had demonstrated Inter Parfums' ability 'to take an established brand and take it to the next level'.
Madar cited the example of Lanvin, which had a comparable quarterly sales increase of 56 per cent in local currencies, which was mainly due to the launch of Rumeur and the continued strength of éclat d'Arpège.
"The Lanvin model will be adapted in the new year for Van Cleef & Arpels fragrance, where we plan to build upon its approximately $20 million sales base by promoting the two strongest families, First and Tsar, and create an entirely new line for launch in 2008," he said.
But although the company has continued to enjoy strong sales of its Burberry brand, increasing 5 per cent in comparable quarterly sales, Madar did note that the introduction of the Burberry London fragrance had only had a 'nominal impact on the brand's overall sales.
The company also launched a new line of fragrances for Banana Republic during the quarter - three scents for women and two for men. This will be followed by a full line of bath and body products, as well as a fragrance and personal care line for Gap North American stores during the course of 2007, all of which is expected to further boost sales.
Russell Greenberg, Inter Parfums CFO said he believed that the company's financial position remained strong, reinforcing that sales for the full year in 2006 should be in the range of $305 to $306m, with net income of approximately $16.9m.