Inter Parfums, Inc. (Interparfums), an international fragrance company, has reported a 12.0% increase in earnings for fiscal 2019. This follows the company’s announcement of record annual sales in January. Interparfums’ income rose to $60.2 million, up from $53.8 million the previous year. Earnings per diluted share also increased by 11.1% from $1.71 to $1.90. In the fourth quarter of 2019, net income reached $8.2 million, a 1.8% increase from the same period in the prior year.

Despite its successful year, Interparfums has adjusted its outlook for 2020 due to the ongoing disruption caused by the coronavirus outbreak. The company’s full-year sales amounted to $713.5 million, a 5.6% increase from the previous year. Fourth quarter revenues also saw a slight increase from $177.2 million to $177.8 million. The growth was driven by strong performance in the Middle East, where annual sales increased by 22.4%. Interparfums’ largest market, North America, also showed a significant increase of 11.4%. Western Europe experienced a growth of 2.6%, while Eastern Europe rose by 4.7%. Asia, however, faced a slight decline in sales in actual dollars but achieved a slight increase in constant currencies. Central and South America struggled due to political and social instability, impacting the company’s revenues.

Russell Greenberg, Interparfums EVP and CFO, emphasized that the company’s business fundamentals remain strong. However, the global impact of the coronavirus has affected the company, resulting in a decline in air travel and consumer traffic in key shopping and tourist areas. As a result, Interparfums has delayed certain launches and revised its guidance for 2020. The company initially predicted annual earnings per share of about $2.00 with net sales of approximately $742 million. Now, Interparfums expects its net income to be in line with its 2019 results. However, the company recognizes that if the impact of the coronavirus continues beyond the first few months of the year, further changes to its outlook may be necessary.

Despite the delays, Interparfums has already begun its launch schedule for 2020. Coach “Dreams” and “L’Homme Rochas” were released early in the year, and new fragrances from Montblanc, Guess, and Hollister are set to launch in the spring. Releases from Kate Spade, Jimmy Choo, and Anna Sui are planned for later in the year. The company remains confident in its ability to navigate the challenges posed by the coronavirus outbreak but remains cautious of potential future changes to its outlook.

Useful links:
1. Inter Parfums, Inc. Official Website
2. World Health Organization – Coronavirus Advice for Public