Enhanced distribution helps boost Inter Parfums
European and North American operations, boosted by distribution
agreements in Europe, new launches and the continued strength of
The company said that total sales for the second quarter were up 18 per cent, from $70.3m (€51.3m) to $82.8m, a result that was boosted by favourable currency exchange rates, which meant that at comparable exchange rates, the figure increased by 13 per cent. On a six month basis, the total net sales were up 19 per cent from $141.2m to $167.9m, an increase of 14 per cent at comparable exchange rates. The company says it will release its full results on August 8, when profit figures should also be revealed. A strong first quarter led Inter Parfums to raise its outlook for the rest of the year, in turn pushing net profits up by 31 per cent, to reach $5.8m compared to $4.4m during the first quarter of 2006. Breaking the figures down geographically, company CEO Jean Madar reported that second quarter sales in Europe had increased by 16 per cent to reach $70.5m, compared to $60.7m a year earlier. "Since mid-first quarter, we've begun recording sales by our four majority-owned European distribution subsidiaries," said Madar, speaking about the newly acquired distribution businesses, by which the company is now looking to further boost future sales. Madar also pointed out that in Europe Burberry fragrance sales have continued to be a driving force, helped along by the addition of the Burberry Summer fragrance. Likewise, Lanwin brand sales and Van Cleef & Arpels were also contributing factors. In the US second quarter sales were up 29 per cent, to reach $12.3m, with growth mainly due to the continued roll out of the 70 new bath and body products in 160 Gap Body and Banana Republic stores across the US. Looking to the rest of the year the company said that in Europe it was readying launches under the S.T. Dupont Blanc, Roxy and Paul Smith Rose. In the US future rollouts for the period are ambitious and will again focus on personal care lines for the Gap and Banana Repbulic stores, which will spread to a futher 500 Gap adult stores in time for the beginning of the holiday season. Reflecting a big emphasis on the US market, the company is also expecting to launch additional personal care products in the stores, including six new Gap Eaux de Toilettes, as well as Gap fragrances and grooming products for men, together with two new fragrances for the Banana Republic stores.