Inter Parfums 2013 sales showing signs of recovery

Having lost its biggest fragrance license at the beginning of the year, Inter Parfums sales ended on a stronger note, as it shows signs of closing the gap left by Burberry.

The company said that, excluding Burberry sales, it grew like-for-like revenue by 16.3% in the fourth quarter to reach €57.7 million, driven by stronger sales for its Montblanc, Jimmy Choo, Boucheron and Repetto fragrances.

However, compared to the same period last year, the figures were down significantly, impacted by the fact that sales for that quarter included almost €70m in revenues from the Burberry license.

For the full year 2013 sales came in at €350.4m, compared to full year 2012 sales of €445.5m. On a like-for-like basis, the company said that full year sales were up 19.3% to €251.5m.

Highlights were strong gains in Lanvin and Montblanc fragrances

Highlights from the annual results included the fact that sales of its biggest selling brand, Lanvin, were up by 7% to $65m, driven by an increase of 13% for its Éclat d’Arpège line.

Other fragrance brands in the Lanvin line that also drove the results included Jeanne Lanvin and Marry Me! lines and the Lanvin Me line, which the company launched last Spring.

Significant growth was also seen in the Montblanc fragrances, where full year sales were up by 36% to €62.7m, driven by the continued strength of the Montblanc Legend line.

The US market takes hit from Burberry loss

On a regional basis full year sales took a significant hit in the US market, due to the popularity of the Burberry fragrance brand there. As a result, 2013 sales were €79.1m, compared to $103.6m in 2012.

Sales also slumped in Western Europe, but not by as much, which means that this market has now overtaken the US to become the company’s largest. In 2013 sales in the region were €82.6m, compared to €108.5m in 2012.

Elsewhere, the company noted that like-for-like sales in the developing markets of South America, Asia and Eastern Europe grew in the 15% to 20% range.