Interparfums net sales climb 11 percent in Q4; full-year performance also better than expected
Led by the convincing performances of its Coach, Rochas and Dunhill brands, Interparfums announced an uptick in sales for the quarter ending December 31, 2017. Net sales clocked in at $149.5 million, up 11.0% from $134.8 million in the same prior-year period. At comparable foreign currency exchange rates, consolidated fourth quarter net sales increased 6.0 percent.
The fragrances and cosmetics major also announced a stronger than expected end to the year. Sales were up 13.5 percent, from $521.1 million in 2016 to $591.3 million in 2017.
The company has strong European markets to thank, which registered a 15.5 percent rise in product sales in 2017, powered by the company’s three largest brands — Montblanc, Jimmy Choo and Lanvin achieved year-over-year sales growth of 4 percent, 20 percent, and 5 percent, respectively.
Successful product launches, as well as expanded distribution, also drove buoyancy, “The final quarter was stronger than expected with our new Coach for Men contributing much of the upside surprise. Rochas, another of our newer brands, also performed quite well, with brand sales up over 39% and 34% for the 2017 fourth quarter and full year, respectively,” stated Jean Madar, Chairman & CEO of Interparfums.
Across the pond, the U.S. market witnessed a 2.2 percent decline, despite key brand Dunhill having a strong fourth quarter. “The slight decline in sales relates more to the timing of new product launches than with the strength of our brands. With 2018 product launches for many of our major brands, including Abercrombie & Fitch, Hollister, Dunhill, Anna Sui and Oscar de la Renta, we look forward to resuming consolidated sales growth for U.S. based brands in 2018," said Mr Madar.
With 2017 net sales ahead of expectations, Interparfums has raised its 2018 sales guidance to approximately $620 million, with net income projected to be at the higher end of its $1.27 to $1.29 diluted share range. The reduction in the corporate income tax rate recently enacted by Congress could push that up to $1.44 per diluted share, according to Russell Greenberg, Executive Vice President & Chief Financial Officer.
Inter Parfums shares have risen about 27 percent over the past year. Some analysts have suggested the company has the resources to fund another acquisition. It last acquired Rochas from U.S.-based Procter & Gamble in 2015.
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