NEW YORK–(BUSINESS WIRE)–Inter Parfums, Inc. (NASDAQ GS: IPAR) right now reported outcomes for the second quarter ended June 30, 2021. The common greenback/euro change charge for the present second quarter was 1.20 in comparison with 1.10 and 1.12 within the second quarter of 2020 and 2019, respectively.
Second Quarter Highlights:
($ in thousands and thousands, besides per share knowledge)
2021
2020
2019
2021 v 2019
Net Sales
$207.6
$49.5
$166.2
25%
Gross Margin
64%
54%
64%
—
Operating Income (loss)
$44.7
$(5.5)
$22.5
99%
Operating Margin
22%
(11)%
14%
800 bps
Net Income (loss) attributable to IP
$22.7
$(3.1)
$12.3
84%
Diluted EPS (loss per share)
$0.71
$(0.10)
$0.39
82%
In mild of the close to cessation of enterprise within the second quarter of 2020, the Company is evaluating its present midyear outcomes with these of 2019. For the primary half of 2021, web gross sales rose 18% to $406.1 million from $344.5 million in the identical interval of 2019. At comparable international foreign money change charges, web gross sales rose 16%. Year-to-date web earnings attributable to Inter Parfums, Inc. rose 61% to $50.3 million in comparison with 2019’s $31.2 million. For the six months ended June 30, 2021 and 2019, diluted earnings per share have been $1.58 and $0.99, respectively, for a rise of 60%. The common U.S. greenback/euro change charge was 1.20 and 1.13 for the six months ended June 30, 2021 and 2019, respectively.
Jean Madar, Chairman & CEO of Inter Parfums, Inc. famous, “Once once more, final yr’s outbreak of the COVID-19 pandemic and the enterprise circumstances that ensued make comparisons with the very depressed second quarter of 2020 largely irrelevant. Far extra significant is a comparability with the second quarter of 2019 and the working leverage ensuing from the practically 25% enhance in web gross sales in 2021.”
He continued, “Through the primary half of 2021, gross sales in our largest market, North America, rose 59% in comparison with the identical interval in 2019, whereas gross sales in Western Europe and Asia approximated these of the primary half of 2019. Two of our smaller markets, Eastern Europe and Central and South America, skilled gross sales development of 54% and 10%, respectively, over the primary half of 2019. The solely area the place gross sales declined was the Middle East, by 23% to be exact. Similarly, there was development of our 4 largest manufacturers. In the primary six months of 2021, Montblanc, Jimmy Choo, Coach, and GUESS model gross sales rose 3%, 39% 34% and 58%, respectively, in comparison with the primary half of 2019. In the primary half of 2019, the debut of Montblanc Explorer brought about a surge in model gross sales, which helps clarify the modest enhance in Montblanc model gross sales within the present first half.”
Discussing latest occasions, Mr. Madar highlighted the signing of a transaction settlement for the unique worldwide license for the manufacturing and distribution of Ferragamo model perfumes. Subject to sure circumstances, the 10-year license is predicted to start out in October 2021 and has a 5-year optionally available time period. “We will function via a wholly-owned Italian firm, primarily based in Florence, with each legacy and newly created entrants produced in Italy. Once the enterprise and present stock are transferred to us, we shall be in a greater place to estimate the contribution Ferragamo fragrances will make to 2021 gross sales. With our versatile enterprise mannequin, sturdy stability sheet, international distribution community, and dedicated workers, our pursuit of extra license agreements continues as we concentrate on established manufacturers whose house owners are searching for to reinvigorate their perfume enterprise. While there will be no assurance that any agreements shall be finalized, including choose manufacturers to our portfolio stays a excessive precedence.”
Mr. Madar concluded, “The rollout of merchandise unveiled over the course of the primary half continues. These embody Montblanc Explorer Ultra Blue, I Want Choo for Jimmy Choo, Coach Sunset Dreams, the Kate Spade signature scent, Rochas Girl, Alibi for Oscar de la Renta, Bella Vita for GUESS, Away by Abercrombie & Fitch, Canyon Escape for Hollister and Driven by Dunhill. Of particular observe, the MCM genderfluid perfume that we launched in first quarter continues to dazzle. With orders practically triple our preliminary first yr expectations, we now have needed to refill the pipeline a number of occasions to maintain tempo with gross sales. Brand extensions dominate our new product pipeline for the rest of the yr, together with flankers for Jimmy Choo Urban Hero, the Oscar de la Renta Bella household, the Hollister Wave assortment, and the Anna Sui Fantasia pillar. We not too long ago debuted Effect, a full suite of males’s grooming and perfume merchandise below the GUESS label.”
Russell Greenberg, Executive Vice President and CFO famous, “The slight decline in second quarter gross margin in comparison with the identical interval in 2019 is primarily attributable to a weaker greenback and its impact on European operations. In the present second quarter, gross margin for European operations was 67% in comparison with 68% in the identical interval in 2019. Gross margin for U.S. operations was 53%, up from 52% within the second quarter of 2019. Once once more, gross sales rose at a sooner charge than we had anticipated, as was the case within the first quarter. As a end result, 2021 second quarter promotion and promoting expenditures, included in S, G & A expense, of $33.2 million or 16% of web gross sales, have been nicely under what we might usually spend in 1 / 4 when gross sales exceeded $200 million. By means of comparability, within the second quarter of 2019, promotion and promoting expenditures have been $36.4 million or 22% of web gross sales of $166.2 million. For the yr as a complete, we proceed to count on promotional and promoting bills to strategy historic ranges of 21% of web gross sales.”
Mr. Greenberg additionally famous, “Our 2021 second quarter and year-to-date backside strains have been negatively impacted by two gadgets. The first is curiosity expense incurred in reference to the borrowings associated to the April 2021 acquisition of the long run headquarters of our Paris-based 73% owned subsidiary, Interparfums SA. The second was an unusually excessive tax charge, which components in a worldwide tax settlement with the French Tax Authority protecting the interval January 1, 2010 via December 31, 2020 referring to a wholly-owned subsidiary of Interparfums SA.”
Mr. Greenberg continued, “We closed the second quarter with working capital of $461.7 million, together with roughly $298 million in money, money equivalents and short-term investments, and a working capital ratio of three.1 to 1. The $133.2 million of long-term debt pertains to the beforehand talked about headquarters acquisition, which was financed by a 10-year €120 million (roughly $143 million) financial institution mortgage. Approximately €80 million of the variable charge debt was swapped for fastened rate of interest debt. Cash supplied by working actions aggregated $38.1 million for the six months ended June 30, 2021.”
Reaffirms Increase in 2021 Guidance
Mr. Greenberg concluded, “The uptick in COVID-19 circumstances and the extremely transmissible Delta variant might change our expectations, however primarily based upon year-to-date outcomes, and present order ranges for the second half, we proceed to count on 2021 web gross sales of roughly $750 million, leading to diluted web earnings per share of $1.95.” Guidance assumes that the common greenback/euro common change charge stays at present ranges, there is no such thing as a vital resurgence of the COVID-19 pandemic and excludes potential Ferragamo perfume gross sales following the closing of the pending transaction.
Dividend
The Company’s common quarterly money dividend of $0.25 per share shall be paid on September 30, 2021 to shareholders of file on September 15, 2021.
Conference Call
Management will conduct a convention name to debate monetary outcomes and enterprise developments at 11:00 AM ET on Tuesday, August 10, 2021. Interested events could take part within the name by dialing (201) 493-6749; please name in 10 minutes earlier than the convention name is scheduled to start and ask for the Inter Parfums name. The convention name may also be broadcast dwell over the Internet. To hearken to the dwell name, please go to www.interparfumsinc.com and click on on the Investor Relations part. If you’re unable to hear dwell, the convention name shall be archived and will be accessed for about 90 days at Inter Parfums’ web site.
Founded in 1982, Inter Parfums, Inc. develops, manufactures and distributes status perfumes and cosmetics because the unique worldwide licensee for Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Dunhill, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade, MCM, Moncler, Montblanc, Oscar de la Renta, Paul Smith, Repetto, S.T. Dupont and Van Cleef & Arpels. Inter Parfums can also be the proprietor of Lanvin fragrances and the Rochas model. Through its international distribution community, the Company’s merchandise are offered in over 120 international locations.
Statements on this launch which aren’t historic in nature are forward-looking statements. Although we consider that our plans, intentions and expectations mirrored in such forward-looking statements are affordable, we can provide no assurance that such plans, intentions or expectations shall be achieved. In some circumstances you possibly can determine forward-looking statements by forward-looking phrases resembling “anticipate,” “consider,” “might,” “estimate,” “count on,” “intend,” “could,” “ought to,” “will,” and “would,” or related phrases. You mustn’t depend on forward-looking statements, as a result of precise occasions or outcomes could differ materially from these indicated by these forward-looking statements because of quite a few essential components. These components embody, however aren’t restricted to, the dangers and uncertainties mentioned below the headings “Forward Looking Statements” and “Risk Factors” in Inter Parfums’ annual report on Form 10-Okay for the fiscal yr ended December 31, 2020 and the stories Inter Parfums information infrequently with the Securities and Exchange Commission. Inter Parfums doesn’t intend to and undertakes no obligation to replace the data contained on this press launch.
See Accompanying Tables
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(In 1000’s besides per share knowledge)
(Unaudited)
Three Months Ended
June 30,
Six Months Ended
June 30,
2021
2020
2021
2020
Net gross sales
$
207,573
$
49,506
$
406,101
$
194,330
Cost of gross sales
75,223
22,662
148,502
78,444
Gross margin
132,350
26,844
257,599
115,886
Selling, basic and administrative bills
87,695
32,367
162,591
103,630
Impairment loss
—
—
2,394
—
Income (loss) from operations
44,655
(5,523
)
92,614
12,256
Other bills (earnings):
Interest expense
1,270
361
1,647
1,362
(Gain) loss on international foreign money
309
(13
)
(1,557
)
(967
)
Interest earnings
(768
)
(754
)
(1,155
)
(1,761
)
Other (earnings) expense
93
—
(98
)
—
904
(406
)
(1,163
)
(1,366
)
Income (loss) earlier than earnings taxes
43,751
(5,117
)
93,777
13,622
Income taxes (profit)
14,715
(2,134
)
28,115
3,306
Net earnings (loss)
29,036
(2,983
)
65,662
10,316
Less: Net earnings attributable to the noncontrolling curiosity
6,379
135
15,343
3,375
Net earnings (loss) attributable to
Inter Parfums, Inc.
$
22,657
$
(3,118
)
$
50,319
$
6,941
Earnings (loss) per share:
Net earnings (loss) attributable to Inter Parfums, Inc. widespread shareholders:
Basic
$
0.72
($
0.10
)
$
1.59
$
0.22
Diluted
$
0.71
($
0.10
)
$
1.58
$
0.22
Weighted common variety of shares excellent:
Basic
31,653
31,532
31,642
31,531
Diluted
31,799
31,532
31,786
31,667
Dividends declared per share
$
0.25
—
$
0.50
$
0.33
CONSOLIDATED BALANCE SHEETS
(In 1000’s besides share and per share knowledge)
(Unaudited)
ASSETS
June 30,
2021
December 31,
2020
Current property:
Cash and money equivalents
$
149,713
$
169,681
Short-term investments
148,100
126,627
Accounts receivable, web
176,540
124,057
Inventories
163,482
158,822
Receivables, different
19,394
1,815
Other present property
22,395
16,912
Income taxes receivable
265
2,806
Total present property
679,889
600,720
Buildings, tools and leasehold enhancements, web
135,452
19,580
Right-of-use property, web
33,701
24,734
Trademarks, licenses and different intangible property, web
203,652
214,108
Deferred tax property
6,187
8,041
Other property
49,438
22,962
Total property
$
1,108,319
$
890,145
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt
$
32,246
$
14,570
Current portion of lease liabilities
6,564
5,133
Accounts payable – commerce
59,970
35,576
Accrued bills
100,911
95,629
Income taxes payable
18,502
5,297
Total present liabilities
218,193
156,205
Long–time period debt, much less present portion
133,244
10,136
Lease liabilities, much less present portion
29,351
21,354
Equity:
Inter Parfums, Inc. shareholders’ fairness:
Preferred inventory, $.001 par; approved
1,000,000 shares; none issued
—
—
Common inventory, $.001 par; approved 100,000,000 shares;
excellent 31,654,138 and 31,608,588 shares at
June 30, 2021 and December 31, 2020, respectively
32
32
Additional paid-in capital
77,529
75,708
Retained earnings
538,690
503,567
Accumulated different complete loss
(17,457
)
(5,997
)
Treasury inventory, at price, 9,864,805 shares at June 30, 2021 and December 31, 2020
(37,475
)
(37,475
)
Total Inter Parfums, Inc. shareholders’ fairness
561,319
535,835
Noncontrolling curiosity
166,212
166,615
Total fairness
727,531
702,450
Total liabilities and fairness
$
1,108,319
$
890,145
https://www.businesswire.com/information/residence/20210809005602/en/Inter-Parfums-Inc.-Reports-2021-Second-Quarter-Results
