Inter Parfums
This article was originally published in The Rose Sheet
Executive Summary
Net sales increased 31.3% to $61.3 mil. in the second quarter, driven by the performance of prestige fragrances, which experienced a 44% sales gain, Inter Parfums says Aug. 9. Net sales were up 28% at comparable foreign exchange rates. Prestige unit was boosted by revenue from Burberry fragrances, as well as strong sales of Lanvin, the latest Paul Smith and Celine scents, and higher sales of Nickel products, particularly in Europe, firm adds. Mass market sales fell 19%. Net income declined 5.5% to $3.2 mil. due to the "impact of the higher Burberry royalty rate and marketing expenses that went into effect in July 2004 and January 2005, respectively," company notes. Firm adjusts 2005 sales guidance to $274 mil., an increase of 17%, if the dollar remains at current levels, versus prior expectations of $280 mil., while earnings are forecast at $14.6 mil. Adjustment is due to weakness of the dollar and expenses related to recently announced deal with Gap Inc. to develop beauty care for its Gap and Banana Republic divisions (1"The Rose Sheet" July 25, 2005, p. 3)...