Inter Parfums has reported that it is expecting its 2023 net sales to hit 1.11 billion dollars as it continues to invest in its business and benefit from the growth of travel retail.
In its report, the company stated that the guidance would result in earnings per diluted share of 3.70 dollars, representing an eight percent increase in net sales and a nine percent increase in earnings per diluted share, compared to its 2022 guidance of 1.025 billion dollars in net sales.
The group said it would not be forecasting a significant expansion of its operating margin, as reflected in its estimated earnings per diluted share.
It will be targeting 12 percent earnings per diluted share growth in the coming year.
It further noted that its guidance assumed the average dollar to euro exchange rate remains at current levels, and that there is no resurgence of the covid-19 pandemic.
In a release, chairman and chief executive officer of Inter Parfums, Jean Madar, said its guidance increase for 2023 is largely to do with the strength of its brand portfolio and its global distribution network, which he said had been an “engine for internal growth” in the past.
Madar added: “We will also ship Donna Karan and DKNY products for the full year, versus only five months in 2022. Finally, new product launches, primarily brand extensions and flankers, for our largest as well as our mid-sized brands, should once again be catalysts for sustained top line growth.”
Madar also said the company should benefit from the continued growth of its travel retail business, as well as a “more streamlined” supply chain and “modest” price increases that it is planning to implement at the beginning of 2023.
He noted that its estimates have not been influenced by the loosening of restrictions in China because current levels “appear to be modest” and therefore “incalculable”.