Interparfums: challenging comps weighs on the Q3 12 sales performance

News published on October Tuesday 23, 2012
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Interparfums posted 9M 12 sales of EUR328m (+20.3% reported and +15% LFL), implying a sharp deceleration in Q3 (c. +2% vs. +23.6% in H1) on top of a very challenging comparison base (Q3 11: +34.3% LFL following +9.6% in H1 11). On November 21st, the group will disclose its FY13 outlook.


ANALYSIS

  • Q3 12 sales of Interparfums (EUR118.9m) have sharply decelerated with LFL growth of only 2% approx. vs. 23.6% in H1 12 and +25.4% In Q2. This slowdown is not surprising considering very tough comps (Q3 11: +34.3%) due to the stellar launch of the women’s line Burberry Body last year. As a consequence, Interparfums’ main licence Burberry showed sales declining by 3% in Q3 and now accounts for 51% of sales over the first 9M vs. 55% a year ago.
  • This negative performance was offset by the strong growth of the two new licences Montblanc (Q3: +67%, 11% of 9M sales) and Jimmy Choo (+44%, 9% of sales). Growth at Lanvin (+12%, 14% of sales) was driven by continuing momentum of Eclatd’Arpège and the launch of the Jeanne Lanvin Couture line.
  • By geographical area and over 9M, North America (24% of sales) had the most dynamic growth (+38%) thanks to the roll-out of Jimmy Choo and Montblanc. The group also performed well in the Middle East & Eastern Europe regions where sales increased over 30%. Asia (17% of sales) and South America (9% of sales) also posted double-digit growths with +16% and +17% respectively. Finally, it is worth adding that sales in Europe were also positive (+6%) despite the tough environment.
  • Interparfums will disclose its 2013 target on November 21st. Next year will be rich in new launches, particularly for Jimmy Choo, Lanvin, Van Cleef & Arpels and Boucheron. As a reminder, Interparfums and Burberry have signed a transition agreement (announced on October 11th), which includes an additional 3 months period ending on 31st March 2013 and confirms the exit payment by 31st December 2012 (approx. EUR200m).
NEXT CATALYSTS
  • Interparfums will release targets for 2013 on November 21st.
Cédric Rossi, crossi@bryangarnier.com

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