Inter Parfums sees mixed results in Q3 2012
Net sales decrease 3.2% to $166.3m
Inter Parfums, Inc has reported a mixed third quarter 2012, with net sales decreasing to $166.3m, down by 3.2% compared to the same period last year.
Although European-based operations saw sales drop 4% from $154.7m in 2011 to $148.6m this year, sales in the US grew by 4% from $170m to $177.7m. However, net income attributable to Inter Parfums dropped to $10m compared to $10.4m last year, while basic and diluted earnings per share were down from $0.34 to $0.33. Furthermore, gross margin dropped to 60.8%, compared to 62.5% in 2011.
Despite these mixed results, several key brands within the European-based operations did see strong growth in the third quarter, with fragrance sales for Lanvin rising by 12%, Montblanc by 67% and Jimmy Choo by 44%.
Russell Greenberg, executive vice president and chief financial officer, said: “While a stronger US dollar has a positive effect on gross margin during the third quarter, gross margin declined slightly due to product mix and the sale of certain slow moving goods at a discount. On the other hand, S, G & A (selling, general and administrative expenses) as a percent of net sales decreased primarily due to reduced promotional and advertising spending, as last year’s third quarter included the largest product launch in our history for Burberry Body.”