Inter Parfums, Inc. has released its financial report for the three-month period, achieving impressive results. The company reported net sales of $368 million, a 31% increase compared to the previous year. Additionally, gross profit reached $235 million, showing a year-on-year growth of 29%.
Jean Madar, Chairman & Chief Executive Officer of Inter Parfums, expressed satisfaction with the favorable trends in the fragrance industry, high demand for their brands, and successful product launches, extensions, and distribution efforts. These factors contributed to record quarterly net sales and strong earnings.
The North American market remained Inter Parfums’ largest, with sales increasing by 29% in the third quarter compared to the same period last year. Western Europe followed with a sales growth of 24%. Asia, the company’s third-largest market, also performed well, with a 20% increase in net sales during the same period. Notably, Inter Parfums experienced increased sell-out in China for brands like Coach, Montblanc, and Ferragamo, which allowed them to manage their inventory levels effectively and create a favorable outlook for 2024.
Regarding recent license acquisitions, such as Roberto Cavalli and Lacoste, Inter Parfums expects to benefit from these brands starting in 2024. Shipments of Roberto Cavalli fragrance products are scheduled to begin in January 2024, with extensions planned for the middle of the year. The Lacoste license will take effect in January 2024, and the company is well-prepared to launch corresponding strategies and innovative products.
To ensure sell-out at the retail level, build brand awareness, and drive further growth, Inter Parfums plans to make a significant investment in advertising and promotion during the fourth quarter. The company aims to allocate 21% of its annual net sales for advertising and promotion, demonstrating their commitment to aggressive investment. The first three quarters of 2023 have been highly successful, and Inter Parfums looks forward to executing their plans for the remainder of the year.
Despite geopolitical tensions and a high base in the fourth quarter of 2022, Inter Parfums remains confident in the strength of the market and their year-to-date performance. They affirm their FY2023 net sales guidance of $1.3 billion, representing a 20% growth compared to FY2022. Moreover, the company has increased its earnings per diluted share guidance to $4.75, a 26% growth from $3.78 in FY2022.
