Inter Parfums has said it expects 10% sales growth for 2008 on the assumption of euro-dollar parity and maintenance of margins. The company, which specialises in perfumes licensing including Burberry, Lacroix and Lanvin, is forecasting the same growth in 2007 with sales reaching €237m compared with the €245m envisaged earlier.
Philippe Santi, deputy director general in charge of finance, said the US dollar was the problem which was costing Inter 3% in growth. Some 33% of Inter sales are in dollars against 60% in euros. Operating profits this year are expected to rise by 1% to €29.5m.
Apart from the effects of exchange rates, Inter has been affected by low stocks of Van Cleef & Arpels perfumes sold off by Yves Saint-Laurent Beaute. Philippe Benacin, president of Inter Parfums, said they had received 600 units compared with the 10,000 to 15,000 necessary to respond to demand. Benacin added that he remained optimistic over the future of the brand with Van Cleef & Arpels becoming the No 2 brand in the Inter range over the next few years. Currently, Burberry accounts for over 60% of business activity.
The Burberry brand is the main focus in 2008 with a launch of Beat - a woman's fragrance on a woody base - scheduled for March. Benacin said the fragrance is hoped to recruit new younger consumers with this new product and a major publicity campaign is being launched shortly. A new Lanvin perfume - Lanvin Rumeur Rose - is to be launched in the Russian and Asian markets and next year Inter is to seek new brands with a more regional style. The future of the Christian Lacroix licence is understood to be under review.