Interparfums reaches record sales in 2011

"Strong momentum overall in particular Burberry, Lanvin, Jimmy Choo and Montblanc fragrances combined with successful launches in 2011 drove very strong gains in the last quarter of the year," Interparfums SA informed. Consolidated fourth quarter sales reached €125.8 million, rising 79.2% at current exchange rates and 81.4% at constant exchange rates from the same quarter last year.

For the full year, consolidated sales rose to €398.3 million, up 30.3% at current exchange rates and 32.9% at constant exchange rates yearon-year. “With this performance, Interparfums once again added market share and exceeded annual guidance that had already been raised several times,” the company said.

Philippe Benacin, Chairman and Chief Executive Officer commented: "Successful launches in 2011 of Jimmy Choo, Montblanc Legend and Burberry Body lines in particular, positive outlooks for Lanvin, Van Cleef & Arpels and Boucheron fragrances and a portfolio recently strengthened by the addition of the Balmain and Repetto brands, allow us to look to the future with optimism. However, reflecting the highly uncertain economic environment, for the time being we will be maintaining our 2012 sales target at €400 million".

• With sales for the first time surpassing the €200 million milestone, up to 20% this year, Burberry fragrances continued its trajectory of sustained growth since 1993 on solid performances by the brand’s historic lines and the Burberry Body line’s highly successful and promising launch;
• In a year without any major launches, Lanvin fragrances expanded further on steady sales from the Éclat d’Arpège lines and growth by the Jeanne Lanvin and Marry Me ! lines;
• With the launch of the men’s line Legend (more than €10 million for the year) and steady performances by the brand’s historic lines integrated into the portfolio at the end of 2010, Montblanc fragrances had sales of more than €30 million or three times more than the starting year target;
• Very high product turnover accompanied by the extremely rapid renewal of orders at points of sale for the first women’s fragrance line Jimmy Choo resulted in sales of €29 million, again three times higher than initial estimates at the start of the year;
• After two years devoted to renewing the product range and repositioning the brand in the exclusive high-end segment (launch of the Féerie, Oriens and Midnight in Paris lines), Van Cleef & Arpels fragrances have consolidated their positions with sales of €20 million;
• Boucheron fragrances’ integration in the portfolio as of Spring 2011 generated additional sales of more than €8 million.

Philippe Santi, Executive Vice President, added: "Substantial marketing and advertising investments of more than €95 million in the period proved particularly effective, contributing to much stronger-thanexpected sales at the year end. In this context, 2011 consolidated operating profit should be slightly higher than in the prior year period."

The company continued to reap benefits from its strong international positions and balanced sale mix:

• In North America, the creation of the US subsidiary Interparfums Luxury Brands and the partnership arrangement with Clarins Group since January 1, 2011 contributed to more than a 40% growth in unit volume;
• Trends since the start of the year in South America and Asia have continued with high growth rates for the full period of 48% and 37% respectively;
• Following strong gains in 2010 (+60%), Eastern Europe confirmed its continuing potential with further growth of 17%;
• Despite weak underlying market conditions in certain countries, sales in Western Europe (excluding France) remained steady (7%) in a highly competitive environment, driven in particular by Jimmy Choo;
• Against the backdrop of modest growth for the perfumes and cosmetics market, France registered an excellent performance (+21%);
• In the Middle East (+20%) growth momentum has been back on track since the Fall.