Inter Parfums, Inc. Reports 2021 Second Quarter Results

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

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