THE WHAT? Inter Parfums has announced that it expects 2020 sales to reach roughly US$442 million, a drop of some 38 percent on 2019’s figures. However, given the significant impact of the COVID-19 pandemic, Chairman and CEO Jean Madar professed the company ‘reasonably pleased’ with that for the year as a whole.
THE DETAILS The fragrance maker revealed that net income per diluted share was expected to hit US$0.46, assuming that the average dollar / euro exchange rate remains at current levels.
The company behind perfumes for well known fashion brands including Lanvin and Coach said that guidance for 2021 would be published in November and that the licensee of Mont Blanc scents was expecting to resume new product launches in earnest, with its first fragrances for the MCM and Katre Spade New York brands making their bow, as well as major programs for Guess and Jimmy Choo.
THE WHY? As Madar noted, sales were hit by the global COVID-19 pandemic in the first half, particularly in the second quarter which saw sales dive 70 percent yoy. However, business picked up in the third quarter and the fourth quarter, with holiday sales to come, should be the strongest for the year. “In addition to the upturn in business in Europe and Asia that we discussed when we announced second quarter results in August, our sales in North America have picked up as well. However, there has been no material change in our travel retail business, and it is unlikely that the duty-free segment will make a comeback any time soon,” Madar said.