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Press release content from Business Wire. The AP news staff was not involved in its creation.
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Press release content from Business Wire. The AP news staff was not involved in its creation.

Inter Parfums, Inc. Reports 2021 Third Quarter Results

November 8, 2021 GMT

NEW YORK--(BUSINESS WIRE)--Nov 8, 2021--

Inter Parfums, Inc. (NASDAQ GS: IPAR) today reported results for the third quarter ended September 30, 2021.

Third Quarter Highlights:

($ in millions, except per share data)

2021

2020

2019

2021 v 2019

Net Sales

$263

$161

$191

37%

Gross Margin

64%

61%

60%

400 bps

Operating Income

$68

$31

$37

85%

Operating Margin

26%

20%

19%

700 bps

Net Income attributable to IP

$38

$17

$21

84%

Diluted EPS

$1.20

$0.52

$0.66

82%

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In light of the near cessation of business in the second quarter of 2020, the Company is comparing its current nine month results with those of 2019. For the first nine months of 2021, net sales rose 25% to $669 million from $536 million in the same period of 2019. Year-to-date net income attributable to Inter Parfums, Inc. rose 70% to $89 million compared to 2019’s $52 million. For the nine months ended September 30, 2021 and 2019, diluted earnings per share were $2.79 and $1.64, respectively, for an increase of 70%.

Jean Madar, Chairman & CEO of Inter Parfums, Inc. noted, “As we reported last month, our largest brands, notably Montblanc, Jimmy Choo, Coach, GUESS and Lanvin performed exceptionally well in the current third quarter turning in gains of 26%, 40%, 98%, 27%, and 37%, respectively, as compared to 2019’s third quarter. Year-to-date, these brands generated sales increases of 11%, 39%, 56%, 44% and 12%, respectively, versus the first nine months of 2019.”

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Discussing year-to-date growth in the Company’s major markets, Mr. Madar stated, “North America, our largest market, leads the way with sales up 140% and 67% compared to the same period in 2020 and 2019, respectively. Gains were also achieved in Western Europe where sales rose 38% and 6% from the first nine months of 2020 and 2019, respectively. Thus far this year, sales in Asia are running 72% and 10% ahead of 2020 and 2019. Other markets including the Middle East, Central and South America and Eastern Europe achieved substantial sales gains over 2020 and only the Middle East did not surpass 2019 sales levels.”

On the subject of plans for 2022, Mr. Madar continued, “In the coming year, an extensive new product pipeline is in the works. Our debuting scents for Moncler, Moncler Pour Homme and Moncler Pour Femme will rollout in early 2022 to thousands of doors, accompanied by a full-scale advertising and promotional campaign. We’ve recently previewed the scents in several hundred doors and the sell-through has been overwhelmingly positive. New men’s fragrance pillars are debuting for Coach, GUESS and Boucheron.”

He continued, “Over the years, we’ve gotten excellent mileage from brand extensions and that’s what we are looking for in 2022 when we introduce flankers for Montblanc Legend, the Coach women’s signature scent, Jimmy Choo’s I Want Choo, GUESS Bella Vita, and Lanvin Éclat d’ Arpège. Of course, two of the leading growth catalysts arise from our newly signed license for Ferragamo, which went effective on October 1, 2021, and the addition of the Donna Karan and DKNY fragrance brands that commences next July.”

Russell Greenberg, Executive Vice President and CFO noted, “In many respects, the third quarter was exceptional. The intensity and duration of our sales rebound was far better than we could have anticipated and for that reason, we raised 2021 guidance three times. Since we postponed most of the 2020 product launches until 2021, we had sufficient inventory, despite supply chain disruptions, to meet strong demand and achieve outstanding top line growth. While the weakness in the dollar relative to the euro would normally depress gross margin, product mix changed that equation. Our current third quarter had a larger proportion of sales of high margin new products that more than offset the negative currency effect.”

He went on to say, “Since sales exceeded expectations throughout 2021, our year-to-date promotion and advertising expense included in selling, general and administrative only aggregated 14.2% of net sales, well below 17.3% in 2019. This enabled us to achieve a year-to-date operating margin of nearly 24%.”

Guidance

Mr. Greenberg pointed out, “The holiday season started earlier this year as our customers placed much of their requirements for delivery in the third rather than the fourth quarter to lessen the effect of supply chain issues. As previously reported, for the full year, we have budgeted 21% of net sales for promotion and advertising expense, or approximately $170.1 million based upon on current guidance, implying $95 million in the fourth quarter. The big push in promotion and advertising is now underway and will continue throughout the fourth quarter with major campaigns throughout the world to support retail sell-through during the holiday season for our leading brands and recent product launches. By making this monumental investment in advertising and promotion encompassing print and broadcast media as well as online advertising and billboards, we expect large scale reorders in the coming year accompanied by a significant gain in market share. As a reminder, we expect 2021 net sales of approximately $810 million, resulting in diluted net income per share of $2.35. Guidance assumes that the average dollar/euro average exchange rate remains at current levels and there is no significant resurgence of the COVID-19 pandemic. We are planning to release initial 2022 guidance later this month.”

Mr. Greenberg continued, “We closed the third quarter with working capital of $491 million, including approximately $324 million in cash, cash equivalents and short-term investments, and a working capital ratio of 3.3 to 1. The $126.6 million of long-term debt relates to the Interparfums SA headquarters acquisition, which was financed by a 10-year €120 million (approximately $139 million) bank loan. Cash provided by operating activities aggregated $101.3 million for the nine months ended September 30, 2021, as compared to cash used in operating activities of $20.2 million for the corresponding period of the prior year.”

Dividend

The Company’s regular quarterly cash dividend of $0.25 per share will be paid on December 31, 2021 to shareholders of record on December 15, 2021.

Conference Call

Management will conduct a conference call to discuss financial results and business developments at 11:00 AM ET on Tuesday, November 9, 2021. Interested parties may participate in the call by dialing (201) 493-6749; please call in 10 minutes before the conference call is scheduled to begin and ask for the Inter Parfums call. The conference call will also be broadcast live over the Internet. To listen to the live call, please go to www.interparfumsinc.com and click on the Investor Relations section. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at Inter Parfums’ website.

Founded in 1982, Inter Parfums, Inc. develops, manufactures and distributes prestige perfumes and cosmetics as the exclusive worldwide licensee for Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Dunhill, Ferragamo Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, MCM, Moncler, Montblanc, Oscar de la Renta, S.T. Dupont and Van Cleef & Arpels. Inter Parfums is also the owner of Lanvin fragrances and the Rochas brand. Through its global distribution network, the Company’s products are sold in over 120 countries.

Statements in this release which are not historical in nature are forward-looking statements. Although we believe that our plans, intentions and expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such plans, intentions or expectations will be achieved. In some cases you can identify forward-looking statements by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would,” or similar words. You should not rely on forward-looking statements, because actual events or results may differ materially from those indicated by these forward-looking statements as a result of a number of important factors. These factors include, but are not limited to, the risks and uncertainties discussed under the headings “Forward Looking Statements” and “Risk Factors” in Inter Parfums’ annual report on Form 10-K for the fiscal year ended December 31, 2020 and the reports Inter Parfums files from time to time with the Securities and Exchange Commission. Inter Parfums does not intend to and undertakes no duty to update the information contained in this press release.

See Accompanying Tables

 

CONSOLIDATED STATEMENTS OF INCOME
(In thousands except per share data)
(Unaudited)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

 

Net sales

 

$

262,696

 

 

$

160,637

 

 

$

668,797

 

 

$

354,967

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 

95,269

 

 

 

63,439

 

 

 

243,772

 

 

 

141,883

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

167,427

 

 

 

97,198

 

 

 

425,025

 

 

 

213,084

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

99,788

 

 

 

65,841

 

 

 

262,379

 

 

 

169,471

 

 

 

 

 

 

 

 

 

 

Impairment loss

 

 

--

 

 

 

--

 

 

 

2,393

 

 

 

--

 

 

 

 

 

 

 

 

 

 

Income from operations

 

 

67,639

 

 

 

31,357

 

 

 

160,253

 

 

 

43,613

 

 

 

 

 

 

 

 

 

 

Other expenses (income):

 

 

 

 

 

 

 

 

Interest expense

 

 

1,697

 

 

 

148

 

 

 

3,344

 

 

 

1,510

 

(Gain) loss on foreign currency

 

 

(613

)

 

 

891

 

 

 

(2,169

)

 

 

(76

)

Interest income

 

 

(233

)

 

 

(393

)

 

 

(1,388

)

 

 

(2,154

)

Other income expense

 

 

(36

)

 

 

--

 

 

 

(135

)

 

 

--

 

 

 

 

 

 

 

 

 

 

 

 

 

815

 

 

 

646

 

 

 

(348

)

 

 

(720

)

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

66,824

 

 

 

30,711

 

 

 

160,601

 

 

 

44,333

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

16,997

 

 

 

8,859

 

 

 

45,112

 

 

 

12,165

 

 

 

 

 

 

 

 

 

 

Net income

 

 

49,827

 

 

 

21,852

 

 

 

115,489

 

 

 

32,168

 

 

 

 

 

 

 

 

 

 

Less: Net income attributable to the noncontrolling interest

 

11,511

5,314

26,854

8,688

 

 

 

 

 

 

 

 

 

Net income attributable to Inter Parfums, Inc.

$

38,316

$

16,538

$

88,635

$

23,480

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to Inter Parfums, Inc. common shareholders:

 

 

 

 

 

 

 

 

Basic

 

$

1.21

 

 

$

0.52

 

 

$

2.80

 

 

$

0.74

 

Diluted

 

$

1.20

 

 

$

0.52

 

 

$

2.79

 

 

$

0.74

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

31,659

 

 

 

31,533

 

 

 

31,648

 

 

 

31,531

 

Diluted

 

 

31,807

 

 

 

31,619

 

 

 

31,793

 

 

 

31,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends declared per share

 

$

0.25

 

 

 

--

 

 

$

0.75

 

 

$

0.33

 

 

CONSOLIDATED BALANCE SHEETS
(In thousands except share and per share data)
(Unaudited)

 

ASSETS

 

 

September 30,
2021

 

December 31,
2020

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

174,848

 

 

$

169,681

 

Short-term investments

 

 

149,192

 

 

 

126,627

 

Accounts receivable, net

 

 

193,868

 

 

 

124,057

 

Inventories

 

 

156,025

 

 

 

158,822

 

Receivables, other

 

 

3,951

 

 

 

1,815

 

Other current assets

 

 

24,626

 

 

 

16,912

 

Income taxes receivable

 

 

1,448

 

 

 

2,806

 

 

 

 

 

 

Total current assets

 

 

703,958

 

 

 

600,720

 

 

 

 

 

 

Buildings, equipment and leasehold improvements, net

 

 

142,823

 

 

 

19,580

 

 

 

 

 

 

Right-of-use assets, net

 

 

31,428

 

 

 

24,734

 

Trademarks, licenses and other intangible assets, net

 

 

203,961

 

 

 

214,108

 

Deferred tax assets

 

 

6,916

 

 

 

8,041

 

 

 

 

 

 

Other assets

 

 

37,465

 

 

 

22,962

 

 

 

 

 

 

Total assets

 

$

1,126,551

 

 

$

890,145

 

 

LIABILITIES AND EQUITY

Current liabilities:

 

 

 

 

Current portion of long-term debt

 

$

15,025

 

 

$

14,570

 

Current portion of lease liabilities

 

 

6,128

 

 

 

5,133

 

Accounts payable – trade

 

 

46,874

 

 

 

35,576

 

Accrued expenses

 

 

117,775

 

 

 

95,629

 

Income taxes payable

 

 

26,547

 

 

 

5,297

 

 

 

 

 

 

Total current liabilities

 

 

212,349

 

 

 

156,205

 

 

 

 

 

 

Long–term debt, less current portion

 

 

126,636

 

 

 

10,136

 

 

 

 

 

 

Lease liabilities, less current portion

 

 

27,771

 

 

 

21,354

 

 

 

 

 

 

Equity:

 

 

 

 

Inter Parfums, Inc. shareholders’ equity:

 

 

 

 

Preferred stock, $.001 par; authorized 1,000,000 shares; none issued

--

--

Common stock, $.001 par; authorized 100,000,000 shares; outstanding 31,722,300 and 31,608,588 shares at September 30, 2021 and December 31, 2020, respectively

32

32

Additional paid-in capital

 

 

83,070

 

 

 

75,708

 

Retained earnings

 

 

569,354

 

 

 

503,567

 

Accumulated other comprehensive loss

 

 

(29,322

)

 

 

(5,997

)

Treasury stock, at cost, 9,864,805 shares at September 30, 2021 and December 31, 2020

(37,475

)

(37,475

)

 

 

 

 

 

Total Inter Parfums, Inc. shareholders’ equity

 

 

585,659

 

 

 

535,835

 

 

 

 

 

 

Noncontrolling interest

 

 

174,136

 

 

 

166,615

 

 

 

 

 

 

Total equity

 

 

759,795

 

 

 

702,450

 

 

 

 

 

 

Total liabilities and equity

 

$

1,126,551

 

 

$

890,145

 

 

View source version on businesswire.com:https://www.businesswire.com/news/home/20211108006077/en/

CONTACT: Contact at Inter Parfums, Inc.

Russell Greenberg, Exec. VP & CFO

(212) 983-2640

rgreenberg@interparfumsinc.com

www.interparfumsinc.com-or-Investor Relations Counsel

The Equity Group Inc.

Devin Sullivan (212) 836-9608/dsullivan@equityny.com

Linda Latman (212) 836-9609/llatman@equityny.com

www.theequitygroup.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: FASHION COSMETICS RETAIL LUXURY OTHER RETAIL SPECIALTY

SOURCE: Inter Parfums, Inc.

Copyright Business Wire 2021.

PUB: 11/08/2021 04:05 PM/DISC: 11/08/2021 04:06 PM

http://www.businesswire.com/news/home/20211108006077/en