Inter Parfums interim Q4 results show massive leap on strong Burberry sales
Sales for the quarter, which includes the all-important holiday trading period, increased by 68 percent to $189.1m, compared to $112.5m in the corresponding period last year, a figure that represented an increase of 61 percent at comparable foreign exchange rates.
The means that for the full financial years 2011 sales rose by a total of 34 percent to $615.2m, a figure that exceeded the company’s guideline, which was set at $570.0m at the beginning of last year.
Taking into consideration the weakness of the dollar against foreign currencies during the course of 2011, net sales were up by 28 percent.
Brand extensions and marketing boost Burberry
During the year the company’s flagship fragrance brand Burberry has gone from strength to strength on the back of an extensive marking campaign that proved particularly successful over the holiday period and further launches to extend the portfolio.
“In local currency, Burberry fragrance sales were up 96 percent in the final quarter of 2011 and 20 percentfor the full year 2011 due in great part to solid performances by the brand's historic lines and the highly successful global rollout of Burberry Body,” Jean Madar, Chairman & CEO of Inter Parfums.
In addition, Madar also mentioned the fact that new launches from Jimmy Choo and Montblanc had also helped to drive the sales momentum throughout 2011.
US sales leap on luxury distribution deal
Likewise, the Paris-based company also stressed that its US operations have been gaining ground during the 12 month period, particularly in the luxury sales segment, where it has now established a footing.
“In addition, the 2011 sales increase reflects the commencement in January 2011 of European-based product distribution in the US by Inter Parfums Luxury Brands, a subsidiary of Inter Parfums,” Madar added.
Although the company has not launched any new products specifically in the US market last year, sales revenues during 2011 grew by 87 percent thanks to the increased distribution in luxury fragrances, while sales in Western Europe grew by 10 percent.
Deveveloping market continue strong growth
Otherwise, the biggest sales gains for the year were seen in the developing market, with Asia rising 37 percent, Eastern European sales rising 17 percent and revenues in South America increasing by 48 percent.
"While sales were 8 percent ahead of our previous forecast, we are maintaining our 2011 guidance for net income attributable to Inter Parfums of approximately $32.5 million as a result of significant advertising and promotional expenditures incurred,” Russell Greenberg, Executive Vice President & Chief Financial Officer said.
Net income will be announced at the beginning of next month, when the company’s full results are published.
The company says that for 2012 it expects net sales of approximately $625.0 million and net income of approximately $35.7 million.
