Inter Parfums (IPAR) Q1 Sales Fell 10.3%

Inter Parfums (NASDAQ: IPAR) announced that for the three months ended March 31, 2015, net sales were $109.2 million compared to $121.7 million in the first quarter of 2014, with a substantial portion of the decline attributable the strong dollar versus the euro. At comparable foreign currency exchange rates, consolidated first quarter net sales were $118.4 million. Inter Parfums plans to issue results for the 2015 first quarter on or about May 11, 2015.

Net Sales:

*** The Street was looking for Q1 sales of $111.7 million.

Discussing European-based operations Jean Madar, Chairman & CEO of Inter Parfums stated, “The decline in sales is also due in large part to the difficult comparison for the Karl Lagerfeld brand. The launch of Karl Lagerfeld’s signature scents for both men and women yielded more than $13 million in sales in 2014, as compared to brand sales of $2.5 million in 2015. With a new Karl Lagerfeld product launch scheduled for later this year, we expect to see more robust brand sales. The nearly 20% depreciation of the euro versus the dollar masked many of the gains in comparable quarter sales volume. For example, Montblanc fragrances experienced a 19% sales increase in local currency, as compared to a 2% decline in dollars with Montblanc Legend and Emblem as the two main sales drivers. Jimmy Choo fragrances also performed exceptionally well with sales up 52% in local currency but up only 25% in dollars, reflecting the continued momentum of the Jimmy Choo Man scent launched late last year and the recent launch of Jimmy Choo Blossom. Our third largest brand, Lanvin had a modest 3% decline in local currency sales.”

Discussing U.S.-based operations, Mr. Madar noted, “The 16% increase in first quarter sales reflects two new product launches, Extraordinary by Oscar de la Renta and Icon by Dunhill along with continuing sales of Agent Provocateur fragrances which began in earnest in the second half of 2014.”

2015 Guidance

Russell Greenberg, Executive Vice President & Chief Financial Officer stated, “We continue to expect 2015 net sales of $470 million, which represents a 7% increase from 2014 sales at comparable foreign currency exchange rates. We also maintain our net income per share guidance to be in the range of $0.98 to $1.00 per diluted share. Our current guidance excludes any contribution from newer brands, including Rochas, whose acquisition is scheduled for mid-year, and our guidance also assumes the dollar remains at current levels.”

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