Inter Parfums Q1 Net Sales Up 24% to $311.7 Million

Inter Parfums, the New York-based fragrance producer, reported $311.7 million net sales in 2023 Q1, with an increase of 24% compared to 2022 Q1. While operating income in Q1 reached $90.3 million, saw growth of 47%. The net income (attributable to IP) in Q1 reached $54.1 million, up 53%. The company’s diluted EPS increased by 52% to $1.68.

Jean Madar, who serves as the Chairman and Chief Executive Officer of Inter Parfums, recently announced that the company had its most successful sales quarter in its history during the first quarter of 2023.

The top line of the European operations grew by 26% or 29% in constant currency, while the U.S. based operations grew by 19%. Sales of the Jimmy Choo brand in Europe increased by 63%, surpassing Montblanc as Inter Parfums' largest brand due to the success of the I Want Choo line launched in 2021, I Want Choo Forever, and Rose Passion.

In addition, new flankers were rolled out at the end of 2022 and early 2023. Montblanc and Coach brand sales rose by 28% and 24%, respectively, and there were double-digit sales gains on several mid-sized brands, including Karl Lagerfeld, Boucheron, and Rochas.

In terms of US business, Inter Parfums achieved a 19% increase in sales during the first quarter of 2023, building upon the 77% increase achieved in the same quarter last year. The company reported that incremental sales from Donna Karan and DKNY, as well as double-digit growth for Ferragamo and Oscar de la Renta following successful brand extensions, contributed to much of the growth. Additionally, brand extensions within established lines for Abercrombie & Fitch and MCM also contributed to the sales increase.

Inter Parfums achieved sales gains in all regions during the first quarter of 2023. The company's three largest markets, North America, Western Europe, and Asia/Pacific, saw sales growth of 36%, 21%, and 8%, respectively. Sales in Central and South America, Eastern Europe, and the Middle East also grew, by 43%, 25%, and 5%, respectively. Furthermore, the company's travel retail business has picked up in line with the resumption of international travel. The company is also optimistic about the progressive reopening of China, which is expected to lead to meaningful sales growth as the year unfolds.

Inter Parfums said the company expects to achieve net sales of $1.25 billion and earnings per diluted share of $4.25 in 2023 full year.