Interparfums, the renowned fragrance house behind popular brands like Jimmy Choo and Anna Sui, has announced a significant decline in sales for the second quarter of 2020. The company reported a staggering 70.2 percent drop in sales, attributing the decline to the widespread impact of the Covid-19 pandemic.

During the quarter ending on June 30, overall net sales plummeted to $49.5 million, compared to $166.2 million in the same period last year. The European market bore the brunt of the decline, experiencing a drastic 68.6 percent decrease to $39.4 million. U.S. sales also suffered, plummeting by 75.2 percent to $10.1 million.

The closure of retail stores in various countries where Interparfums products are sold contributed heavily to the sharp decline in sales. Jean Madar, the company’s Chairman and CEO, acknowledged this factor as the primary reason for the challenging sales performance. Fortunately, as stores slowly reopened in select markets in May and June, Interparfums observed a slight improvement in sales. However, Madar recognizes that the year 2020 will continue to pose difficulties for the company.

One market segment that has yet to show any signs of recovery is travel retail, which traditionally accounted for 15 to 20 percent of Interparfums’ business. With ongoing travel restrictions in place in many countries, the company anticipates a stagnant period for this segment in the foreseeable future.

In response to the pandemic’s impact, Interparfums has made the decision to postpone the launch of several major programs and campaigns until 2021. This includes initiatives for esteemed brands such as Kate Spade New York, Jimmy Choo, Anna Sui, and Guess.

Despite the prevailing challenges, Interparfums recently entered into a strategic partnership with Divabox. The collaboration involves acquiring a 25 percent stake in Divabox’s e-commerce platform, Origines-Parfums. Through this alliance, Interparfums aims to introduce exclusive fragrance lines and products tailored to specific consumer demands on Origines-Parfums’ platform.

The company is expected to release the full results for the second quarter of 2020 around August 10, 2020. As Interparfums continues to navigate the far-reaching effects of the pandemic, it remains hopeful for a recovery in sales as more stores reopen and consumer confidence improves. However, the challenges posed by the ongoing crisis are projected to persist throughout the remainder of the year.

Useful links:
Interparfums Official Website
Origines-Parfums Website