French perfume company Interparfums has reported a slight recovery in its third-quarter revenues, signaling a positive trend after a significant decline in the second quarter due to store closures caused by the ongoing Covid-19 pandemic. During the period from July to September, the company achieved revenues of €111m ($130m), showing a 14% decrease at current exchange rates. This recovery has been observed across all regions, with notable improvements in Asia, France, and the United States. Despite this positive development, the company remains cautious about the outlook for 2021 due to the lingering impact of the pandemic.

While Interparfums’ largest brand, Montblanc, experienced a 16% decline in sales, other brands in its portfolio such as Jimmy Choo and Lanvin faced declines of 34% and 3% respectively. However, Coach, another brand under Interparfums, witnessed a 3% increase in sales. Notably, Asia was the only region that showed revenue growth, with sales rising by 29% compared to the previous year. On the other hand, Western Europe saw a decline of 16% in revenues, but France stood out with a 12% increase in sales.

Despite the challenges posed by the pandemic, Interparfums remains optimistic about achieving a satisfactory level of profitability in the second half of the year. The company plans to continue investing in marketing and communications to drive growth and adapt to the changing market dynamics. However, in the first nine months of the year, Interparfums’ revenues totaled €250m, signifying a significant decrease of 32% in both current and constant currencies.

As Interparfums navigates the uncertainties brought about by the pandemic, industry analysts and stakeholders will closely monitor its performance and strategies to mitigate the ongoing challenges. The company’s ability to adapt to the changing consumer behaviors and international market dynamics will play a crucial role in shaping its future growth.

Useful links:
1. Cosmetics Business: Interparfums Q3 sales recover but 2021 prospects remain uncertain
2. Reuters: French perfume maker Interparfums’ Q3 revenue recovers from COVID-19 slump