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Published
Nov 13, 2018
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Inter Parfums forecasts 6% sales growth for 2019, unveils new fragrances

Published
Nov 13, 2018

Inter Parfums on Monday reported its updated 2019 guidance, forecasting sales to reach $705 million, as the New York company expects to reap the benefits of fragrance drops from both new and mainstay brands.

Jimmy Choo - Inter Parfums


"Our initial 2019 sales guidance implies a 6% year-over-year increase based upon our 2018 net sales guidance of $665 million," said the company's CFO, Russell Greenberg, adding that the strengthening dollar hides what is closer to a 9% increase, when reporting sales in constant currency.

"While a strong U.S. dollar has a negative impact on our net sales, it favourably impacts gross margin, because over 45% of net sales of our European operations are denominated in U.S. dollars, while almost all associated costs are incurred in euro. As such, we are looking for 2019 net income per diluted share attributable to Inter Parfums to increase 12.4% using $1.61, our 2018 estimate, as a base," said Greenberg.

The international fragrance maker and distributor of global brands such as Coach and Jimmy Choo said that the increased sales projection follows strong sales across its mainstay lines, as well as the rollout of new brands and collections. 

"With regard to our largest brands within our European operations, we will unveil Montblanc Explorer, a new men’s scent, in all geographic markets early in the new year," said Jean Madar, Chairman and Chief Executive Officer.

In addition, a new Jimmy Choo scent for men is forecast for the close fall, with two new scents for women planned for next year: A Girl in Capri for Lanvin in the summer and Floral Blush, a Coach fragrance in the fall. I

Limited edition scents are expected from Rochas, Boucheron, Van Cleef & Arpels, S.T. Dupont, Repetto and Paul Smith, at different times throughout 2019.

In the U.S., Guess fragrance sales will be recorded for the complete duration of 2019, compared to about seven months in 2018, said Inter Parfums, with plans to rollout two extensions, one each for the 1981 and Seductive lines.

"We will also animate several of our newer fragrance families with flankers, including one or more each for Bella Blanca by Oscar de la Renta, Fantasia for Anna Sui, Century by Dunhill and Wave and Festival Vibes for Hollister," said Madar.

Moreover, Authentic, an entirely new fragrance duo for Abercrombie & Fitch, is planned for a spring alongside a multi-scent men’s collection for Dunhill in the second quarter. The first prestige fragrance collection from Graff will also bow, as well as the distribution of amenities "to the most prestigious hotels and travel venues."

"2019 will also mark our entry into direct-to-consumer e-commerce with a fragrance collection created with supermodel Lily Aldridge," added Madar.

"Everything points to 2019 being a highly ambitious and productive year, resulting in record sales and earnings," he concluded.

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