08.13.14
Inter Parfums has reported its financials or the second quarter, ending June 30, 2014 The company credits its fragrance laucnhes with helping to increase sales.
A few highlights of the financial report:
“With respect to European-based operations, new product launches and the continuing success of several established scents produced the 31.2% increase in second quarter sales of ongoing brands. Montblanc fits both categories as brand sales were up 88% due to the spring launch of Emblem coupled with the strong performance of the brand’s Legend fragrances.”
Mader continued to explain:
“One of the highlights of 2014 was the debut of the Karl Lagerfeld fragrance duo which contributed approximately $4 million in incremental sales for the quarter. In addition, sales of existing collections by S.T. Dupont and Paul Smith, the Repetto signature scent, and Lanvin’s Eclat d’Arpège exceeded those of last year’s second quarter. Together these gains more than offset the 6% comparable quarter decline in Jimmy Choo brand sales; as previously noted, in last year’s second quarter, Jimmy Choo brand sales rose more than 40% driven by the launch of Flash. Later this fall, Jimmy Choo Man is unveiling, and with better than expected pre-orders, we anticipate that this new scent will be a catalyst for growth in brand sales.”
Madar attributed the slight decline in U.S.-based sales to “the challenging comparison with last year’s second quarter when we commenced sales of Dunhill legacy fragrances.”
Madar also said he expects brand momentum to build as the new Dunhill fragrance, Icon, debuts later this year and continues in 2015. Agent Provocateur’s Fatale and Fatale Pink will also be increasing distribution this year.
Russell Greenberg, executive VP/CFO added:
“As expected, gross margin in the second quarter of 2014 increased to 57.6% of sales. The increase was primarily attributable to the impact of the sale of our remaining Burberry inventory, at cost, during the second quarter of 2013…Our financial position remains very strong. We entered the second half with $409 million in working capital, including approximately $275 million in cash, cash equivalents and short-term investments and no long-term debt.”
A few highlights of the financial report:
- Net sales of ongoing brands (excluding Burberry brand sales) increased 22.1% to $118.2 million from $96.8 million; at comparable foreign currency exchange rates, net sales of ongoing brands increased 20.0%;
- Reported net sales of $118.2 million were up 0.6% compared with $117.5 million in the 2013 second quarter when Burberry brand sales were included;
- European-based operations generated sales of ongoing brands of $94.7 million, up 31.2% from $72.1 million;
- Sales by U.S.-based operations were $23.5 million, compared to $24.7 million;
- Gross margin was 57.6% of net sales, up from 54.1%;
- S, G & A expense as a percentage of net sales was 46.8% compared to 47.4%;
- Operating margin was 10.9% of net sales compared to 6.7% of net sales;
- Net income attributable to Inter Parfums, Inc. was $6.1 million compared to $3.8 million;
- Basic and diluted earnings per share were $0.20 compared to $0.12.
“With respect to European-based operations, new product launches and the continuing success of several established scents produced the 31.2% increase in second quarter sales of ongoing brands. Montblanc fits both categories as brand sales were up 88% due to the spring launch of Emblem coupled with the strong performance of the brand’s Legend fragrances.”
Mader continued to explain:
“One of the highlights of 2014 was the debut of the Karl Lagerfeld fragrance duo which contributed approximately $4 million in incremental sales for the quarter. In addition, sales of existing collections by S.T. Dupont and Paul Smith, the Repetto signature scent, and Lanvin’s Eclat d’Arpège exceeded those of last year’s second quarter. Together these gains more than offset the 6% comparable quarter decline in Jimmy Choo brand sales; as previously noted, in last year’s second quarter, Jimmy Choo brand sales rose more than 40% driven by the launch of Flash. Later this fall, Jimmy Choo Man is unveiling, and with better than expected pre-orders, we anticipate that this new scent will be a catalyst for growth in brand sales.”
Madar attributed the slight decline in U.S.-based sales to “the challenging comparison with last year’s second quarter when we commenced sales of Dunhill legacy fragrances.”
Madar also said he expects brand momentum to build as the new Dunhill fragrance, Icon, debuts later this year and continues in 2015. Agent Provocateur’s Fatale and Fatale Pink will also be increasing distribution this year.
Russell Greenberg, executive VP/CFO added:
“As expected, gross margin in the second quarter of 2014 increased to 57.6% of sales. The increase was primarily attributable to the impact of the sale of our remaining Burberry inventory, at cost, during the second quarter of 2013…Our financial position remains very strong. We entered the second half with $409 million in working capital, including approximately $275 million in cash, cash equivalents and short-term investments and no long-term debt.”