Inter Parfums develops cosmetics for bebe clothing
clothing and accessory manufacturer bebe to supply cosmetics,
fragrance and body products for the brand.
The fragrance giant will design, manufacture and supply fragrances and cosmetics to bebe stores throughout the US and Canada and selected stores worldwide by the end of this year. Boost US sales Although American, the majority of the company's sales occur in Europe and this latest deal will aide the company to increase it American business. Last quarter the company reported sales of $123.2m, $110.6m worth of which came from its operations this side of the Atlantic. The deal will also help the company strengthen its presence in the beauty and cosmetics market - one of the company's growth strategies highlighted by CEO Jean Madar earlier this year. A lip gloss will be the first product that the company will produce under the bebe signature, which will appear in stores in time for the holiday period 2008, and a signature fragrance will follow mid next year, according to Madar. For bebe the launch of a signature fragrance is a way of strengthening its global market presence. "The launch of a global fragrance in combination with our increasing international presence supports ourobjective to build our brand globally" said bebe CEO Gregory Scott. Growth exceeds expectations Inter Parfums experienced a highly successful 2007 despite concerns that the economic instability may affect the company's results. The holiday period significantly boosted the year and future financial expectations were adjusted accordingly. "As a result of the better than expected performance in 2007 and the initial success with our 2008 launch schedule, we are raising our 2008 guidance to net sales of approximately $442m and net income of approximately $25.8m or $1.25 per diluted share," said Inter Parfums' CFO Russel Greenberg. First quarter results from 2008 confirmed financial strength as sales increased 35 percent (at comparable exchange rates) on last year's first quarter, driven by the success of the new Burberry fragrance The Beat. However, Greenberg did warn that significant advertising costs for the launch would fall in the second quarter.