2011 first-half sales of Interparfums reach up 9.6%

Solid performances from the portfolios main lines and the continued rollout of new lines launched in the first quarter contributed to sales of €77.4 million in the 2011 second quarter at constant exchange rates, up 7% over the same period in 2010. However, this growth was limited by the euros strength in relation to the US dollar over the period with sales at current exchange rates of €74.1 million, or an increase of 2.5% on 2010.

For the first six months, despite a high comparison base from the launches of Burberry Sport and Oriens in 2010, consolidated sales grew 9.6% at constant exchange rates and 8.2% at current exchange rates as compared with the 2010 first half. This momentum reflects in particular excellent results from Jimmy Choo and Montblanc fragrances for the first six months that have already surpassed full-year targets for 2011.

Philippe Benacin, Chairman and Chief Executive Officer commented: "On the strength of their performances in the first half, Jimmy Choo and Montblanc fragrances have clearly established their role as significant growth drivers for the company. In the 2011 second half, noteworthy events will include the worldwide launch in September of a major womens line, Burberry Body, providing a significant boost to year-end momentum and strengthening prospects for meeting our target for annual revenue of €350 million".

Philippe Santi, Executive Vice President, added: "The year in progress will be atypical in terms of results with very high margins in the first six months followed by intentionally lower levels in the second half linked to significant marketing and advertising investments planned for the launch campaign in the fall for the Burberry Body line".

Highlights by brand

With steady performances by the brands historic lines, Burberry fragrances had sales of €85 million in the 2011 first-half, closely in line with the last six months of 2010. As anticipated, the decline reflects a high comparison base from the launch of Burberry Sport
in the 2010 first-half;

With sales of €26 million, an increase of 14%, Lanvin fragrances marked further gains, now underpinned by three womens fragrance lines providing steady sources of revenue, Éclat d’Arpège, Jeanne Lanvin and Marry Me !;

The extremely promising start for the first Jimmy Choo fragrance line generated €13 million in sales despite inventory shortages in response to strong demand on initial order renewals;

Montblanc fragrances had sales of €12.6 million based on good performances by the brands historic lines integrated into the portfolio at the end of 2010 and the launch of the mens line, Legend (nearly €5 million for six months);

Van Cleef & Arpels fragrances, while down in relation to the launch of the womens fragrance line Oriens in the 2010 first-half, had sales of nearly €10 million, in line with annual forecasts.

Highlights by region

The potential of new markets was confirmed by significant gains in South America (+19%), Eastern Europe (+16%) and Asia (+14%);

Western Europe (+8%) and France (+6%) have for their part maintained good growth momentum;

North America has reaped the benefits of the creation of Interparfums Luxury Brands and the partnership arrangement with the Clarins Group since January 1, 2011;

The Middle East has remained stable, showing relatively resilience in light of the difficult geopolitical environment.