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Inter Parfums, Inc. reported record net sales of $324 million for the first quarter of 2024, a 4% increase from the same period in 2023. European product sales remained flat, while U.S. product sales surged by 18%. The positive foreign exchange impact was 0.6% due to exchange rate fluctuations. Despite challenges in Eastern Europe and declines in some fragrance lines, the company remains optimistic about future growth.
Inter Parfums, Inc. ha riportato vendite nette record di 324 milioni di dollari per il primo trimestre del 2024, con un aumento del 4% rispetto allo stesso periodo del 2023. Le vendite dei prodotti europei sono rimaste stabili, mentre quelle dei prodotti statunitensi sono aumentate del 18%. L'impatto positivo del cambio valuta è stato dello 0,6% a causa delle fluttuazioni dei tassi di cambio. Nonostante le sfide nell'Europa orientale e i cali in alcune linee di fragranze, l'azienda rimane ottimista riguardo alla crescita futura.
Inter Parfums, Inc. reportó ventas netas récord de $324 millones para el primer trimestre de 2024, un incremento del 4% en comparación con el mismo periodo de 2023. Las ventas de productos europeos se mantuvieron estables, mientras que las ventas de productos de EE. UU. aumentaron un 18%. El impacto positivo del cambio de divisas fue del 0,6% debido a las fluctuaciones en los tipos de cambio. A pesar de los desafíos en Europa del Este y las caídas en algunas líneas de fragancias, la compañía se mantiene optimista sobre el crecimiento futuro.
인터 파퓸스, Inc.는 2024년 첫 분기에 3억 2,400만 달러의 사상 최대 순매출을 보고했으며, 이는 2023년 같은 기간에 비해 4% 증가한 수치입니다. 유럽 제품 판매는 변동이 없었으나, 미국 제품 판매는 18% 급증했습니다. 환율 변동으로 인해 외환 영향은 0.6%의 긍정적인 영향을 받았습니다. 동유럽의 어려움과 일부 향수 라인의 감소에도 불구하고 회사는 미래 성장에 대해 낙관적입니다.
Inter Parfums, Inc. a rapporté des ventes nettes record de 324 millions de dollars pour le premier trimestre 2024, soit une augmentation de 4 % par rapport à la même période en 2023. Les ventes de produits européens sont restées stables, tandis que les ventes de produits américains ont augmenté de 18 %. L'impact positif du taux de change a été de 0,6 % en raison des fluctuations des taux de change. Malgré les défis en Europe de l'Est et les baisses de certaines lignes de parfums, l'entreprise reste optimiste quant à la croissance future.
Inter Parfums, Inc. hat im ersten Quartal 2024 einen Rekordumsatz von 324 Millionen Dollar gemeldet, ein Anstieg um 4% gegenüber dem gleichen Zeitraum 2023. Der Absatz europäischer Produkte blieb stabil, während der Absatz US-amerikanischer Produkte um 18% stieg. Der positive Einfluss des Wechselkurses betrug 0,6% aufgrund von Wechselkursschwankungen. Trotz Herausforderungen in Osteuropa und Rückgängen bei einigen Duftlinien bleibt das Unternehmen optimistisch hinsichtlich zukünftigen Wachstums.
Positive
Record net sales of $324 million for the first quarter of 2024, up 4% from 2023
European product sales remained flat while U.S. product sales increased by 18%
Positive 0.6% foreign exchange impact due to exchange rate fluctuations
Challenges in Eastern Europe due to unfavorable comparison base and sourcing constraints
Declines in some fragrance lines such as Jimmy Choo and Montblanc
Optimism for future growth based on strong pipeline of innovation across key brands
Negative
Flat European product sales compared to exceptional performance in 2023
Challenges in Eastern Europe impacting sales performance
Declines in fragrance sales for Jimmy Choo and Montblanc
More challenging comparison for the first quarter of 2024 due to concentrated launches in 2023
Insights
With Inter Parfums reporting a 4% increase in net sales compared to the same quarter in the previous year, it's evident that the company is maintaining a growth trajectory, albeit at a slightly slower pace than the 24% growth seen in the previous year. This moderation in growth is not uncommon for companies as they scale, especially after a period of significant expansion. The 18% growth in U.S. based product sales is particularly noteworthy, indicating robust domestic demand. Investors should note, however, that the flattening of European sales year-over-year could signal market saturation or competitive pressures in those regions. Looming sourcing constraints in Eastern Europe could also pose a risk to sustained growth. The positive foreign exchange impact of 0.6%, although minor, has provided a slight tailwind to the reported figures. The strategic timing of product launches is a double-edged sword; it can help manage inventory and cash flow but may result in revenue fluctuations that investors need to monitor closely. Looking ahead, the company's guidance indicates confidence in its forthcoming product pipeline, but continued sales growth in the competitive fragrance market will hinge on the success of these releases and market reception.
From a market perspective, the fragrance industry is witnessing a normalization of growth rates post a period of significant recovery. Inter Parfums' strategy to spread out its new fragrance launches may appeal to consumers looking for year-round novelty but also dilutes the impact of each launch. The success of the Donna Karan/DKNY and GUESS brands aligns with the current consumer trend towards established, iconic brands that offer a sense of nostalgia and brand loyalty. The sustained performance of legacy scents, combined with the launch of new collections, suggests that mixing traditional and innovative approaches can be effective in maintaining brand momentum. On the international front, the Phase 2 launch of Abercrombie & Fitch Fierce in Europe, Mexico and Australia represents a strategic move to tap into global markets, an essential growth lever for fragrance companies looking to diversify their geographic revenue streams. Retail investors should pay attention to consumer reception of new launches and how the company leverages its brand portfolio to drive growth in different markets.
Reaffirms 2024 Sales Guidance
NEW YORK--(BUSINESS WIRE)--
Inter Parfums, Inc. (NASDAQ GS: IPAR) (“Inter Parfums” or the “Company”) today announced that for the three months ended March 31, 2024, net sales rose to $324 million, up 4% from $312 million, in the first quarter of 2023.
Net Sales:
($ in millions; data may not foot due to rounding)
Three Months Ended
March 31,
2024
2023
% Change
Total Inter Parfums, Inc.
$324
$312
4%
European based product sales
$231
$230
flat
United States based product sales
$96
$82
18%
Eliminations of intercompany sales
($3)
-
n/a
- The average dollar/euro exchange rate for the 2024 first quarter was 1.09 compared to 1.07 in the 2023 first quarter, leading to a positive 0.6% foreign exchange impact for the 2024 first quarter.
- Eliminations of intercompany sales relate to European based operations product sales to United States based operations.
Management Commentary:
Jean Madar, Chairman & Chief Executive Officer of Inter Parfums, stated, “With ongoing momentum in the fragrance market and favorable initial shipments of Lacoste and Cavalli fragrances, we delivered another record in first quarter sales. Our net sales growth of 4% was expected, considering the 24% sales growth achieved in the same quarter of 2023. We are focused on optimizing the timing of our launches throughout 2024, aiming for a more balanced distribution compared to the heavy concentration of new fragrance launches in the first quarter of last year.
“Despite strong demand for our key brand lines and favorable initial shipments of Lacoste fragrances, our European based operations net sales were flat compared to the exceptional sales performance achieved by our established brands during the first quarter of 2023. Performance in Eastern Europe was adversely impacted by a very unfavorable comparison base, reflecting the particularly strong business recovery during the first quarter of 2023 (+66%), as well as sourcing constraints in certain countries which resulted in sales shifting from the first quarter into the second quarter of 2024.
“Of our three largest brands, Coach fragrance sales rose 5% in the quarter, building upon the 24% increase in the prior year period. As expected, Jimmy Choo and Montblanc saw declines in fragrance sales, following their impressive 63% and 28% growth rates during the same period last year, respectively.
“While Montblanc continues to capitalize on its ongoing momentum through the Explorer line and the launch of Montblanc Legend Blue in this quarter, the high base in 2023 led to a 5% decline. Similarly, Jimmy Choo declined 23% largely due to the I Want Choo Forever launch at the end of 2022 and the Rose Passion launch in the first quarter of 2023. A new extension of I Want Choo is planned for the second quarter of 2024.”
Mr. Madar continued, “For U.S. based operations, our 18% sales growth in the first quarter was primarily driven by Donna Karan/DKNY and GUESS, with comparable quarter sales growing 44% and 21%, respectively. The successful launch of Roberto Cavalli, in combination with the start of distribution of European based brands by our Italian subsidiary, contributed 9% growth.
“Donna Karan’s new four-scent Cashmere Collection performed exceedingly well and was strategically timed to coincide with the brand’s new luxury fashion campaign. Furthermore, GUESS fragrances had continued strong sales performance due to a combination of legacy scents and the debut of GUESS Iconic.
“After a successful Phase 1 distribution roll-out of the Abercrombie & Fitch Fierce fragrance, we launched Phase 2 in Europe, Mexico, and Australia during the quarter.
“While the global fragrance market is not growing as fast as in 2023, it remains healthy. The concentration of launches during the prior year period created a more challenging comparison for the first quarter of 2024, but we anticipate significant growth for the balance of the year with our strong pipeline of innovation across all key brands in our portfolio.”
Mr. Madar concluded, “We are confident in our dynamic market positioning and remain optimistic about our ability to continue to gain market share within this growing market; as such, we are reaffirming our 2024 net sales guidance of $1.45 billion.”
About Inter Parfums, Inc.:
Operating in the global fragrance business since 1982, Inter Parfums, Inc. produces and distributes a wide array of prestige fragrance and fragrance-related products under license agreements with brand owners. The Company manages its business in two operating segments, European based operations, through its 72% owned subsidiary, Interparfums SA, and United States based operations, through wholly owned subsidiaries in the United States and Italy.
The portfolio of prestige brands includes Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Donna Karan/DKNY, Emanuel Ungaro, Ferragamo, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, Lacoste, MCM, Moncler, Montblanc, Oscar de la Renta, Roberto Cavalli, and Van Cleef & Arpels, whose products are distributed in over 120 countries around the world through an extensive and diverse network of distributors. Inter Parfums, Inc. is also the registered owner of several trademarks including Lanvin and Rochas.
Forward-Looking Statements:
Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions, or expectations will be achieved. In some cases, you can identify forward-looking statements by forward-looking words such as "anticipate, "believe", "could", "estimate", "expect", "intend", "may", "should", "will", and "would" or similar words. You should not rely on forward-looking statements, because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and "Risk Factors" in Inter Parfums' annual report on Form 10-K for the fiscal year ended December 31, 2023, and the reports Inter Parfums files from time to time with the Securities and Exchange Commission. Inter Parfums does not intend to and undertakes no duty to update the information contained in this press release.
