Inter Parfums reports revs in-line; lowers top end of FY14 EPS below consensus, reaffirms FY14 revenue guidance
Reports Q2 revenues rose 19.6% year/year to $118.2 mln vs the $117.89 mln consensus.
Co issues downside guidance for FY14, lowers top end of EPS to $0.93-0.95 from $0.93-0.98 vs. $1.05 Capital IQ Consensus Estimate; reaffirms FY14 revs of $495 mln vs. $510.98 mln Capital IQ Consensus Estimate.
"U.S.-based sales declined modestly due to a challenging comparison with the prior year period when we took over the manufacture and distribution of Dunhill legacy fragrances. However, we are growing that brand and the others that we added in late 2012 and 2013 by launching new products and pursuing expanded distribution. In that regard, we will begin shipping our first all new Dunhill fragrance called Icon during the fourth quarter of 2014, and will be in selective distribution until early 2015. Our early spring launches, Fatale and Fatale Pink for Agent Provocateur, have been well received in international markets, and we expect momentum to continue with the commencement of U.S. sales in the fall. Initial distribution of La Nuit de Bohème for Anna Sui began in June, and will culminate late this year with its debut in China. We also plan to launch our inaugural fragrance collection for Shanghai Tang in China later this year, followed by a select international roll-out in 2015."
Total company revenue rose 22% YoY to $118.2 mln, which was driven completely by Europe.
Note: Europe makes up about 82% of IPAR's total revenue, while U.S makes up 18%.
European-based product sales rose 31.2% YoY to $94.7 mln, while U.S.-based product sales fell 4.7% YoY to $23.5 mln.
Discussing European-based operations Jean Madar, Chairman & CEO of Inter Parfums noted, "New product launches helped drive the 31.2% increase in second quarter ongoing brand sales. Montblanc brand sales were up 88% with the spring launch of the second men's line, Emblem, in addition to the steady gains from the brand's Legend fragrances."
"Also in the spring, our first Karl Lagerfeld fragrances were introduced; these signature scents for men and women delivered ~$4 mln in incremental sales during the second quarter of 2014."
"Our top line also benefitted from solid performances by Repetto's signature scent, along with improving sales of existing collections from S.T. Dupont and Paul Smith. In last year's Q2, Jimmy Choo brand sales rose more than 40% driven by the launch of Flash, which helps to explain why Jimmy Choo sales declined 6% in the current Q2 when no new products were introduced."
"However, based on a higher than expected backorder log for Jimmy Choo Man to be launched in the fall, more robust sales are anticipated for the second half. Lanvin also faced a difficult comparison against the launch of Lanvin Me in the prior year period; however, a strong performance by the Eclat d'Arpège enabled the brand to slightly exceed its 2013 Q2 sales."