France’s Interparfums SA, a leading fragrance producer, has achieved impressive results in the first half of 2021, largely driven by its operations in the United States. The company reported a revenue of 101.3 million euros in North America during this period, marking a remarkable 54% increase compared to the same timeframe in 2019. This growth is particularly notable considering the negative impact of the Covid-19 crisis on the company’s sales in the region in the first half of 2020.

The CEO of Interparfums SA, Philippe Benacin, has emphasized the importance of the United States as a key global market, not just for the company, but for the fragrance and cosmetics industry as a whole. Currently, the US market is experiencing a growth rate of 35%, and Interparfums’ American operations have exceeded this with exceptional growth of 68%. These impressive figures can be attributed in part to the outstanding performance of the company’s three flagship brands: Montblanc, Jimmy Choo, and Coach.

Among these brands, Jimmy Choo has experienced the strongest growth in the period, thanks to the successful launch of its “I Want Choo” fragrance. The high demand for this new fragrance has even resulted in some retail locations selling out. In terms of global sales contribution, North America accounted for 38% in the first half of 2021, surpassing Asia (16%), Western Europe (14%), and France (8%).

Overall, Interparfums achieved a total revenue of 266.3 million euros in the first half of 2021, indicating an impressive 11.7% increase compared to the same period in 2019. The company’s net income also experienced significant growth, reaching 45.7 million euros, compared to 27.2 million euros two years ago. Additionally, Interparfums’ operating profit saw a 67% increase to 65.6 million euros in the first half of this year, with an exceptional operating margin of 24.7%.

However, Interparfums anticipates a more challenging second half of the year. The company expects pressures in its supply chain due to rising material costs and transportation problems. Low inventory levels and delays in sourcing are leading to slower deliveries to partners, a situation that is expected to persist until early 2022. As a result, the operating margin is projected to decrease to around 15%, similar to the level in 2019. This is primarily due to increased marketing and publicity expenses linked to the launch of Moncler’s first fragrances.

Despite the challenges ahead in the supply chain, Interparfums remains optimistic about its future prospects. The company continues to focus on driving growth through its portfolio of iconic brands and remains committed to delivering strong financial performance.

Useful links:
1. Interparfums Official Website
2. The Business of Fashion