Interparfums, Inc. announced that for the three months ended 30th June, 2020, net sales declined 70.2% to $49.5 million from $166.2 million for the corresponding period of the prior year.
At comparable foreign currency exchange rates, consolidated second quarter net sales declined 69.8%. Of note, the average dollar/euro exchange rate for the current second quarter is 1.10 compared to 1.12 compared in the second quarter of 2019. Interparfums plans to issue results for the 2020 second quarter on or about 10th August, 2020.
Jean Madar, Chairman & CEO of Interparfums stated, “As we expected, the impact of the COVID-19 pandemic, most notably store closures in many of the countries where our products are sold, was the primary reason for the steep decline in our second quarter sales across all our brands and geographic markets. As stores gradually began to reopen in certain markets in May and June, our sales began to improve from the dismal April levels. We are hopeful that this trend will continue as more stores reopen and customers feel more confident about in-store shopping. However, we recognize that there will continue to be significant challenges for the remainder of 2020. In particular, the one market which shows no sign of a turnaround any time soon is travel retail, which has historically represented 15% to 20% of our business.”
He continued, “Since the start of the Covid 19 pandemic, we have been forced to rethink how we work, plan, and maintain the bonds among our teams, as well as re-examine our relationships with our partners and our short and long-term strategies. Such efforts carried out in the second quarter enabled us to finalize our license agreement with Moncler and our equity stake in Origines Parfums. As we have reported, we have taken measures to adapt our operating expenses, especially marketing and advertising, and with our flexible business model, our business is expected to remain in the black through the first half of the year. However, at this time we lack the visibility to provide any estimates for the balance of this year.”
Founded in 1982, Interparfums, Inc. develops, manufactures and distributes prestige perfumes and cosmetics as the exclusive worldwide licensee for Abercrombie & Fitch, Anna Sui, Boucheron, Coach, Dunhill, Graff, GUESS, Hollister, Jimmy Choo, Karl Lagerfeld, Kate Spade New York, MCM, Moncler, Montblanc, Oscar de la Renta, Paul Smith, Repetto, S.T. Dupont and Van Cleef & Arpels. Interparfums is also the owner of Lanvin fragrances and the Rochas brand. Through its global distribution network, the company’s products are sold in over 120 countries.