Interparfums expects 49% rise in diluted EPS in 2021
New York-based fragrance company Inter Parfums, Inc. (Interparfums) announced its financial guidance for fiscal 2021 on Tuesday, revealing hopes for a 49.1% year-over-year increase in diluted earnings per share after a difficult 2020. This predicted rise is based on the midpoint of the group’s projections of annual diluted EPS of between $0.80 and $0.84 in fiscal 2020, and between $1.20 and $1.25 in 2021.
Interparfums also announced that it expects its full-year net sales to total between $610 million and $625 million in 2021. The midpoint of this range represents a 24.1% year-over-year increase when compared to the company’s predictions for fiscal 2020, when it expects to report net sales of between $495 million and $500 million.
Due to the effects of the Covid-19 pandemic, Interparfums, which develops, manufactures and distributes fragrances under license, suspended the majority of its new product introductions in 2020. However, the company has a busy launch line-up planned for 2021.
In a release, Interparfums chairman and CEO Jean Madar revealed that the group is starting the fiscal year with the launch of its Kate Spade signature scent. The fragrance, which is set to be promoted by a campaign featuring dancer and model Maddie Ziegler, previewed on the Ulta e-commerce platform in November and will move onto the Macy’s and Kate Spade website in mid-December.
The perfume will be stocked in more than 1,200 Ulta stores before the end of this year, before rolling out into other U.S.-based department stores, Amazon and major European markets. Finally, it will launch in Asia, the Middle East and Latin America, where it is expected to arrive in the second quarter.
The first half of 2021 will also see the launch of new fragrances for the MCM, Jimmy Choo, Guess, Hollister, Abercrombie & Fitch, Oscar de la Renta and Dunhill brands, as well as an extension for Interparfums’ largest licensee, Montblanc.
In the second half of the year, the company plans to debut new women’s fragrances for Lanvin, Rochas and Anna Sui.
“After a subdued 2020 in terms of advertising and promotion, we are putting muscle behind our major brands and important launches in 2021,” explained Madar. “With the expectation of effective, safe and widely distributed Covid-19 vaccines, we look forward to regrowing our sales and restoring the operating leverage inherent in our business model, knowing that the road ahead may have some speed bumps along the way.”
According to the executive, the company’s plans to ensure future growth “echo the past”, a strategic approach that involves making the most of Interparfums’ bestsellers in order to establish fragrance dynasties.
The group is also intending to expand and develop its offering so as to to keep its portfolio fresh. In order to do this, Interparfums will be looking both to launch new products for its existing brands and to add new licensees. On top of this, the company hopes to expand its distribution, particularly via e-commerce.
In the third quarter ended September 30, 2020, Interparfums reported net sales of $160.6 million, down 16.0% year over year from $191.2 million. Net income for the period fell 20.7% to $16.5 million, while diluted EPS decreased 21.2% to $0.52.
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