Inter Parfums results skip a beat
The results showed that net sales declined by 5.4% to $118.3m, compared to $125.1m in the corresponding period last year.
But the results were hit hard by the strength of the dollar and the fact that the company’s mainstay sales are in Europe. At comparable currency exchange rates, sales actually increased by 1.0% during the period.
Europe and US sales both fall
In Europe net sales were $88.6m, down 5.3% compared to the $93.6m that was achieved in the corresponding period last year, while sales in the US were down by 5.8% to $29.7m.
Net income was not only down on the same period last year but also missed analysts’ expectations, falling from $3.3m in the fourth quarter last year, to reach $1.9m this year.
For the full financial year 2015 net sales fell by 6.2% to $468.5m, a figure that was hit by negative currency translations throughout the year and one that would have represented an increase of 1.5% at constant currency exchange rates.
Net income for 2015 was up
However, net income was slightly up for 2015 as a whole, coming in at $30.4m, compared to $29.4m for 2014.
“Throughout 2015, our reported net sales were adversely affected by the strong dollar. In 2015, the average U.S. dollar/euro exchange rate was 1.11 as compared to 1.33 in 2014,” said Inter Parfums chairman and CEO Jean Madar.
“The sales impact was especially apparent for the two largest brands within our European operations.”
He went on to say that leading brand Jimmy Choo recorded sales of $92.4m in 2015, representing an increase of 18%, but stressed that this increase was 41% at constant currency exchange rates.
2016 product pipeline a ray of hope?
Looking ahead to 2016, Madar said that the company would continue to face up to the challenge posed by the strong dollar, but also said that he expected that a strong new product pipeline should serve to counteract the effect.
“Irrespective of the strong U.S. dollar environment continuing thus far in 2016, we remain confident in our near and longer term prospects which we are supporting with investment in advertising and promotion across our portfolio of brands, through further brand development and by building upon the strength of our worldwide distribution network,” he said.
“For 2016, we have several firsts coming to market, including our first ever men’s scent for the Abercrombie & Fitch brand and a guy and gal fragrance duo for its Hollister brand, both timed for mid-year.”