Inter Parfums reports double-digit loss in Q1

NEW YORK Inter Parfums, which manufacturers and distributes licensed prestige perfumes, cosmetics and personal care products for specialty retailers, and supplies mass market fragrances, reported a double-digit drop in first-quarter sales and affirmed its 2009 guidance.

"As we previously indicated, year-over-year first quarter sales comparisons were impacted by several factors. The continued strength of the U.S. dollar relative to the euro, had the net effect of depressing 2009 first quarter sales by about 6% as compared to last year," stated Jean Madar, chairman and CEO of Inter Parfums. "Additionally, last year?s first quarter included our largest ever global launch of our largest licensed brand, Burberry The Beat for women, pushing European-based sales up 46% as compared with the first quarter of 2007. With regard to U.S. operations, the comparable quarter sales decline also factors in an exceptionally strong first quarter in 2008, with sales up 31% from the first quarter of 2007. These factors combined with the impact of the global economic crisis on discretionary consumer spending produced the first quarter sales decline."

Net sales for the first quarter were about $90.4 million, down 27% from $123.2 million in the year-ago period. As comparable foreign currency exchange rates, net sales were down 21%.

The company is expected to issue its full first quarter results on May 11, after the close of the market.

Assuming the dollar remains at current levels, the company continues to expect 2009 net sales of $390 million, with net income of roughly $21 million, or 70 cents per diluted share.