Inter Parfums posts record third-quarter sales on U.S. operations, newer brands
Fragrance giant Inter Parfums Inc. announced on Monday a 7% uptick in third-quarter sales for the three months ended September 30, on the back of double-digit growth in the company's U.S. operations and newer brands.
The global company said net sales for the third quarter rose to a record $280 million, a 7% increase from $263 million in the third quarter of 2021. At comparable foreign currency exchange rates, third quarter net sales increased 12%.
The sales gain in the third quarter factored in organic sales growth of 3%, 9% due to new brands, and a negative 5% impact of currency translation, the company said,
For the first nine months of the year, sales increased to 16% to $776 million. Year-to-date, the top line improvement reflects 13% of organic sales growth, 8% attributable to new brands and a negative 5% impact of currency translation, the company added.
By region, U.S based products surged 45% to $98 million, while European product sales dipped 4% to $198 million. Year-to-date, U.S. sales skyrocketed 62%, while European sales lifted 4%.
“Several factors contributed to the top line growth of our U.S. operations in the third quarter. Our newer brands, Ferragamo, Donna Karan and DKNY, accounted for 41% of the gains while organic growth from established brands, including Guess, Oscar de la Renta, Hollister, and Abercrombie & Fitch made up much of the balance. Donna Karan/DKNY sales only commenced as of the end of July, and thus year-to-date, new brands contributed 36% to our sales growth with established brands responsible for the remainder," said Jean Madar, chairman & CEO of Inter Parfums.
“In Euro, European operations grew sales by 12%, as our three largest brands, Montblanc, Jimmy Choo and Coach, outperformed last year’s third quarter by 11%, 32% and 3%, respectively. Many of our mid-sized brands, including Kate Spade, Rochas, Boucheron, Van Cleef & Arpels and Karl Lagerfeld achieved comparable quarter sales growth as well. However, the 17% decrease in the average euro to dollar exchange rate masked those sales gains, and as a result, we are reporting a 4% decline in third quarter European based product sales in dollars," added Madar.
The company acknowledge that quarterly growth was "modest" in comparison to previous quarters, adding it was up against "significant comparables since Q3’21 was up 64%, and we continue to have supply chain challenges which pushed the delivery of certain holiday gifts sets into the fourth quarter."
However, its Italian operations remain fully operational, adding "Ferragamo is on track to be our second largest brand under the U.S. operations banner this year. We also continue to see strong momentum in our travel retail business and our small but growing travel amenities operation has begun to show real promise," said Inter Parfums CFO, Michel Atwood.
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