Inter Parfums Q4 2020 Earnings Report
Key Takeaways
Inter Parfums Inc. reported a surprisingly strong fourth quarter with record sales. The company's largest European brands, Montblanc, Jimmy Choo, and Coach, achieved comparable quarter sales growth. The company also signed a license with Moncler and acquired a stake in Divabox SAS.
Net sales declined 24.5% to $539.0 million for the year ended December 31, 2020.
Net income attributable to Inter Parfums, Inc. declined 36.6% to $38.2 million.
The Board reinstated the payment of a cash dividend, payable quarterly, at the annual rate of $1.00 per share.
Net sales are expected to fall within the $650 million and $660 million range for 2021.
Inter Parfums
Inter Parfums
Forward Guidance
Net sales are expected to fall within the $650 million and $660 million range. Diluted net income per share is estimated to be in the range of $1.40 and $1.45.
Positive Outlook
- Influx of orders for established brands.
- Addition of Kate Spade New York and MCM brand sales.
- Favorable indications from the distribution network.
- Targeting 21% of net sales for advertising and promotion.
- Unwinding certain steps taken in 2020 to minimize the effects of the COVID-19 pandemic
Challenges Ahead
- Fixed expenses will increase slightly.
- Assumes that the average dollar/euro average exchange rate remains at current levels.
- Assumes that there is no significant resurgence of the COVID-19 pandemic.
- Negligible travel retail sales.
- Impact of COVID-19 pandemic