Following its announcement of record annual sales in January, international fragrance company Inter Parfums, Inc. (Interparfums) reported a 12.0% increase in full-year earnings on Monday but reduced its outlook for 2020 in response to the disruption caused by the ongoing coronavirus outbreak.
The company’s income for fiscal 2019 totaled $60.2 million, up from $53.8 million in the previous year, while its earnings per diluted share rose 11.1% year over year, from $1.71 to $1.90.
In the fourth quarter ended December 31, 2019, Interparfums’ net income was $8.2 million, a 1.8% increase from $8.0 million in the prior-year period, while earnings per diluted share were flat at $0.26.
As previously reported, the fragrance group’s full-year sales totaled $713.5 million, up 5.6% from $675.6 million, with fourth quarter revenues rising 0.3% from $177.2 million to $177.8 million.
Over the course of the year, the region that saw the strongest growth was the Middle East, where annual sales increased 22.4% compared to 2018. North America, the company’s largest market, also performed well, posting an 11.4% increase, while Western Europe saw 2.6% growth and Eastern Europe a 4.7% rise.
News was less positive in Asia, where sales slipped in actual dollars but managed a slight increase in constant currencies, and in Central and South America, where political and social instability took its toll on the company’s revenues.
“The fundamentals of our business remain strong,” commented Interparfums EVP and CFO Russell Greenberg in a release. “However, like most companies doing business around the globe, ours is being impacted by the coronavirus. […] As a result of the trends we have seen recently, such as the significant decline in air travel and consumer traffic in key shopping and tourist areas, we delayed certain launches to later in the year, and therefore, our 2020 guidance needs to be revised.”
Having previously predicted annual EPS of around $2.00 on net sales of approximately $742 million for fiscal 2020, Interparfums now expects its net income to be in line with its 2019 results. However, the company pointed out that should the impact of the coronavirus continue past the first few months of the year, this newly lowered outlook may be subject to further change.
Despite the aforementioned delays, Interparfums’ launch schedule for 2020 is already underway, with Coach “Dreams” and “L’Homme Rochas” having already released since the beginning of the year. New fragrances are also due from Montblanc, Guess and Hollister in the spring, as well as from Kate Spade, Jimmy Choo and Anna Sui later in the year.