With Inter Parfumes set to launch the newest Coach fragrance this fall, company execs say they expect it to be a big one during an earnings call.
The brand newest scent will being to rollout this fall beginning in 3,000 stores and latter expand in to further stores says Inter Parfumes Inc. CEO Jean Madar. “By end of 2017 we are looking to be in 20,000 doors worldwide,” he said. “The Coach brand…is the second largest important brand in Japan after Louis Vuitton.”
“We are launching first with eau de parfum, which is the fragrance that is more for the USA — it’s white flower, which we think is the right smell for this market,” Madar said. “For Asia, we’ll be launching eau de toilette. It’s a different fragrance and we will test it in Hong Kong and Korea and Singapore, but China and Japan…will happen more in 2017. We think that we’ll have more visibility for this important market for 2017.”
CFO Russell Greenberg chimed in on the promise of growth saying the business is trying to “improve the image of the their brand and cut downon some of the distribution that may not be the most favorable.” Adding, “I think that’s going to bode well for the fragrance launch. Hopefully we’re going to kind off feed on each other. The amount of advertising we’re going to put behind the Coach [fragrance] is also going to be favorable for the fashion brand,”
During the second quarter of 2016, Inter Parfumes posted gains in sales with the net income up 34 percent to $5.8 million while the company’s American unit, Inter Parfums Inc., posted a 14.8 million net sales increase, with $117.2 million, up from $102 million in the prior-year period. International distribution for Inter Parfums’s first Abercrombie & Fitch men’s scent, First Instinct, and Hollister duo, Wave, contributed to growth, the company said. Inter Parfums also called out Dunhill as a solid performer for the U.S. unit. From the company’s European subsidiary, Montblanc and Jimmy Choo contributed to gains.
Aside from the Newest launch from Coach, Inter Parfumes is planning a slew of new scents including Rochas, and a new fragrance from Lanvin, both set for winter releases, as well as new Jimmy Choo and Abercrombie fragrances coming in the spring.
The company is also monitoring conditions from Brexit to see if it needs to make any adjustments, Greenberg said. “We are monitoring currency trends in the U.K. and reevaluating our current pricing models. As of today, we do not expect any significant pricing changes. If the devaluation of the British pound continues, it may affect future gross margins from sales in that territory,” Greenberg said.