Inter Parfums Inc., a leading fragrance company, reported a 7% increase in third-quarter sales for the period ending September 30, driven by strong performance in the company’s U.S. operations and newer brands. Net sales for the quarter reached a record $280 million, up from $263 million in the same period last year. Adjusted for foreign currency exchange rates, net sales saw a 12% increase.

The sales growth in the third quarter can be attributed to a combination of factors. Organic sales grew by 3%, new brands contributed 9% to the increase, and there was a negative 5% impact from currency translation. For the first nine months of the year, sales increased by 16% to $776 million, fueled by a 13% increase in organic sales, an 8% contribution from new brands, and a negative 5% impact from currency translation.

In terms of regional performance, sales of U.S. based products surged by 45% to $98 million, while European product sales experienced a 4% decline, reaching $198 million. Year-to-date, U.S. sales skyrocketed by 62%, while European sales increased by 4%.

Jean Madar, chairman & CEO of Inter Parfums, attributes the growth of the company’s U.S. operations in the third quarter to several factors. The newer brands, including Ferragamo, Donna Karan, and DKNY, accounted for 41% of the sales gains, and established brands like Guess, Oscar de la Renta, Hollister, and Abercrombie & Fitch contributed to the remainder of the growth. Madar also highlights that sales for Donna Karan and DKNY only began in late July, so the new brands have contributed significantly to the year-to-date sales growth.

In terms of European operations, sales increased by 12%, with the three largest brands, Montblanc, Jimmy Choo, and Coach, performing exceptionally well. However, the 17% decrease in the average euro to dollar exchange rate resulted in a 4% decline in European based product sales when reported in dollars.

The company acknowledges that the quarterly growth was modest compared to previous quarters, primarily due to significant comparables with Q3 of 2021, which saw a 64% increase. Inter Parfums also faced supply chain challenges that resulted in the delay of certain holiday gift sets, pushing their delivery into the fourth quarter.

Despite these challenges, the company’s Italian operations remained fully operational. Inter Parfums CFO, Michel Atwood, notes that Ferragamo is on track to become the company’s second largest brand under the U.S. operations banner this year. The company also highlights the strong momentum in their travel retail business and the promising growth of their travel amenities operation.

In conclusion, Inter Parfums Inc. achieved record third-quarter sales, driven by the strong performance of their U.S. operations and newer brands. Despite facing some challenges, the company remains optimistic about its future growth and is determined to continue delivering high-quality fragrances to its customers worldwide.

Useful Links:
1. Inter Parfums Inc.
2. Inter Parfums Brands