An international manufacturer of fragrances for Inter Parfums, Inc. (Interparfums), announced on Wednesday (22 April), the sales fell by 18,7% in the first quarter, with the fragrances of the brand name Coach, and a Guess-branded to help offset some of the negative results of the multi-COVID-19-in-progress.
For the first quarter ended march 31, the company reported total net sales of 144,8 million, as against 178,2 million in the prior-year period to 2019. In constant currency terms, the fall in the quarterly sales of Interparfums has been 17.8%.
The sales of the products of the group, based in Europe, were down to 20.6 percent to 114.1 million dollars, as against to 143,7 million in the same period of the previous year. The products are based in the USA, there has been a decrease of 10.9% on your sales, you have to 34.5 million to 30.7 million.
According to the chief executive officer and chairman of Interparfums, Jean Madar, the strong sales growth of 35.9%, registered the brand name ” Coach, and 28.9% for the brand Guess, which helped to compensate for the decrease in the number noted by most of the other brands of the company. The growth Coach has been boosted by the launch of the fragrance “Coach” At the” at the beginning of the year to the year 2020.
All of the other major brands that are represented by Interparfums, including the Montblanc and Jimmy Choo, there were declines in sales in the quarterly comparison, due in large part to the temporary closure of a large number of points of sale all over the world, such as the response to the pandemic of the new coronavirus.
In order to protect their own operations, in the face of the disorders are widespread, and are caused by a health crisis in the world, with the Interparfums has reduced spending and has taken steps to protect your treasure. As part of these measures, the company has a number of launches until 2021, including the releases provided for in the brands of Kate Spade New York, Jimmy Choo, Anna Sui, and Guess.
“Our solid financial position and a business model that is highly scalable and should allow us to endure this world until we are able to re-grow the business,” said Madar, said in a statement. “They will be used in 2020, with 253 million dollars, in cash, cash equivalents and short-term investments, and a mere 10.7 million of long-term debt, we have significant resources to fulfill our obligations to the present and the future. We are now focused on safeguarding the relationship with our partners, in particular suppliers and customers.
Jean Madar said that the company has entered the second quarter with more than $ 200 million in cash, net, and 47 million dollars in lines of credit to assets. However, the Board of Directors has authorized a temporary suspension of the payment of the quarterly dividends in cash to the company.
In the light of the uncertainty surrounding a pandemic of a COVID-19, Interparfums does not make projections for the full fiscal year 2020.
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