Inter Parfums sales surge on new lines
strong sales of its newly launched Banana Republic personal care
lines have helped to drive a 37 per cent increase in sales for its
final quarter of 2006.
The company recorded sales of $90.3m for the final quarter, giving a total figure of $321.1m for the year, up 17 per cent on 2005. The full year figure beat the company's own expectations, which were forecast in the range $305m - $306m
The last minute leap in sales means that the company is expecting net income for 2006 to be in the range of $17.2m - $17.5, against a net income of $15.3m for 2005. The company said that it was planning to release full operating results for the full year and fourth quarter on March 7.
"Sales by our US operations surged in the fourth quarter by 141 per cent to $19.8 million due to the September launch of the personal care products we developed and supply to Banana Republic's North American stores, as well as the existing personal care programs and new holiday programs that we have created and have been supplying to Banana Republic and Gap stores." said Jean Madar, Chairman and CEO of Inter Parfums.
Further to this Madar added that he was expecting still greater things during the year ahead with the launch of the personal care lines the company is developing for the Gap's North American stores, due to be launched in the spring of 2007.
Madar also highlighted the strong performance of the company's European business, with sales up 23 per cent to reach $70.5m during the fourth quarter, and up 13 per cent for the full year at $270m.
He said that the driving force of the European sales was the continued success of the Burberry brand fragrances, which have recovered after problems over royalty payments during the course of 2005.
In particular Burberry London sales grew 10 per cent in local currency during the financial year, compared to the performance during the course of 2005.
Madar also referred to strong growth for certain of its established fragrance brands, including Lanivn, which was up 20 per cent for the year, as well as Paul Smith fragrances, with sales up 22 per cent for the year.
Looking ahead to 2007, Madar said that it was too early to adjust the current 2007 guidance, which means the company is currently sticking to projected net sales of $365m and net income of $20.4m, assuming exchange rates remain constant.
As well as the Gap roll-out, Inter Parfums will also be unveiling a number of product launches in the year ahead, including a Roxy brand fragrance scheduled for a fall launch, as well as fragrance launches for women under the Paul Smith, ST Dupont and Chistian Lacroix brands.