Inter Parfums, Inc. Provides Initial 2020 Guidance
Inter Parfums, Inc. (NASDAQ GS: IPAR) today announced initial 2020 guidance, which calls for record net sales of approximately $742 million, resulting in net income of approximately $2.00 per diluted share. Guidance assumes that the average dollar/euro average exchange rate remains at current levels.
Russell Greenberg, Executive Vice President & Chief Financial Officer of Inter Parfums, stated, “Our initial 2020 net sales guidance implies a 4.2% year-over-year increase based upon our 2019 net sales guidance of $712 million. In constant dollars, the increase in net sales would approximate 4.9%, with the continued strength of the dollar slightly understating the growth of our business. Since over 45% of net sales of our European operations are denominated in U.S. dollars, while almost all associated costs are incurred in euro, the strong U.S. dollar has a favorable impact on gross margin. Thus, we look for 2020 net income per diluted share to increase 5.3% as compared to $1.90, our 2019 estimate. As the year unfolds and we have greater visibility, we will update our 2020 guidance as appropriate.”
Jean Madar, Chairman and Chief Executive Officer, commented, “Once again, the projected increase in net sales is predicated on several factors: fragrance launches for our largest brands, extensions and flankers for both our premier and smaller brands, incremental sales from new licenses, as well as the timeless popularity and recurring sales of several established scents. That said, there are a number of headwinds which have muted our initial expectations for 2020, among them, the situation in Hong Kong, Brexit, tariffs, currency fluctuation along with revisions to our launch schedule.”
Discussing European operations, Mr. Madar noted, “As the Montblanc brand is more closely associated with men, we will have a difficult comparison for this, our largest brand, because in 2019 we launched a men’s scent, Montblanc Explorer, while our 2020 entrant is for women. For our second largest brand, Jimmy Choo, our new women’s fragrance launch should be close to year-end, with much of the sell-in continuing into 2021. With the launch of a new Coach women’s scent in first half of the new year, and the newly reimagined Rochas scent, Byzance, we are confident of good sales growth by these brands in 2020. Although it is hard to evaluate the incremental sales contribution of Kate Spade New York at this time as our distribution plans are currently under development, our new Kate Spade New York fragrance comes to market in the summer.”