Inter Parfums profit surges 53% on record-breaking first quarter
Inter Parfums reported on Monday a double-digit uptick in net income, following a record-breaking increase in first-quarter sales.
The New York-based company recorded a 24% uptick in revenues to $311.7 million for the three months ending March 31.
By market, North America, Western Europe and Asia Pacific grew sales by 36%, 21% and 8%, respectively. Sales in Central and South America, Eastern Europe, and the Middle East were also "robust," up 43%, 25%, and 5%, respectively. Additionally, the fragrance maker said its travel retail business "picked up in line with the resumption of international travel," adding it has also begun "to see light at the end of the tunnel with respect to the progressive reopening of China and look forward to meaningful sales growth as the year unfolds."
In Europe, the company's three largest brands Jimmy Choo, Montblanc and Coach surged 63%, 28%, and 24%, respectively. Sales in the region were also upheld by Inter Parfums' mid-size brands, including Karl Lagerfeld, Boucheron and Rochas, all of which achieved double-digit sales growth.
In the U.S., the sales increase was driven by the addition and extension of Donna Karan and DKNY to the company's portfolio and double-digit growth for Ferragamo and Oscar de la Renta, and brand extensions within established lines for Abercrombie & Fitch and MCM.
As a result, net income at the company surged 53% to $54.1 million in the first quarter, compared to $35.3 million in the prior-year period, added Inter Parfums.
As a result of the double-digit sales uptick in the first quarter and the reopening of China, Inter Parfums said it is raising its full-year 2023 guidance.
"With first quarter sales further exceeding our expectations, we are raising our 2023 guidance calling for net sales of $1.25 billion up from $1.2 billion resulting in earnings per diluted share of $4.25 up from $4.00," said Michel Atwood, chief financial officer, Inter Parfums.
"Our current 2023 guidance assumes that the average dollar/euro average exchange rate remains at current levels and there is no significant resurgence of the Covid-19 pandemic.”
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