Inter Parfums has outlined its full Q1 report for the year 2023, continuing to cement what its CEO has called the “best ever sales quarter” in the company’s history.
Speaking on the results, Jean Madar, chief executive and chairman, said the positive results were largely driven by the 26 percent growth in the firm’s European operations, where the sales for Montblanc, Coach and Jimmy Choo each experienced significant increases, the latter of which coming out on top with 63 percent growth.
There was also double digit growth in its mid-size brand portfolio, including at Karl Lagerfeld, Boucheron and Rochas.
In the US, its 19 percent sales rise came on top of its 77 percent increase in the previous quarter, and was largely due to the sales at Donna Karan, DKNY, Ferragamo and Oscar de la Renta, as well as expansions at Abercrombie & Fitch and MCM.
Overall, Inter Parfums reported net sales of 311.7 million dollars, a 24 percent increase on its 250.7 million dollars from the same period last year. Its gross margin was up from 63.3 percent to 65.1 percent, boosted by a combination of pricing and a strong US dollar.
Inter Parfums’ operating income rose 47 percent from 61.2 million dollars in the previous year to 90.3 million dollars, while its operating margin was up 29 percent from 24.4 percent.
Its net income attributable to IP rose from 35.3 million dollars to 54.1 million dollars, while its diluted earning per share came in at 1.68 dollars, a 52 percent increase on its previous 1.10 dollars.
CFO reaffirms guidance, Abercrombie & Fitch secures distribution for Fierce
Michel Atwood, the group’s CFO, noted that the company closed Q1 with 489 million dollars in working capital, while its long-term debt totaled 145 million dollars ending March 31, largely due to its SA headquarters acquisition.
He added: “Affirming our raised guidance, as announced last month in our first quarter sales release, we believe we remain well on track to achieve net sales of 1.25 billion dollars and earnings per diluted share of 4.25 dollars.
“The impact of China on our sales is only marginally included in our guidance. We will be in a better position to revisit this subject as that business scales up and we have better visibility.”
Next to its financials, Inter Parfums also announced that it has been granted the right by Abercrombie & Fitch to distribute the brand’s men’s fragrance, Fierce, in select markets on a test basis for three years.
From September 1, the group will first cover certain major markets before expanding into additional regions in February 2024.
Chairman Madar noted the duo’s further plan for growing penetration in department stores, specialty retail and duty-free stores of existing markets, while also exploring opportunities in untapped markets.