Inter Parfums, Inc. Reports 2020 First Quarter Results

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[{"type":"text","content":"\nProvides COVID-19 Business Update\n\n NEW YORK--(BUSINESS WIRE)--\nInter Parfums, Inc. (NASDAQ GS: IPAR) today reported results for the first quarter ended March 31, 2020. The average dollar/euro ratio for the current first quarter was 1.10 compared to 1.14 in the first quarter of 2019.\n\n\nFirst Quarter 2020 Compared to First Quarter 2019:\n\n\n\nNet sales were $144.8 million or 18.7% lower than $178.2 million, at comparable foreign currency exchange rates, net sales declined 17.8%;\n\n\nSales by European based operations declined 20.6% to $114.1 million from $143.7 million;\n\n\nSales by U.S. based operations declined 10.9% to $30.7 million from $34.5 million;\n\n\nGross margin was 61.5% of net sales compared to 61.6% of net sales;\n\n\nS,G&A expense as a percentage of net sales was 49.2% compared to 42.9%;\n\n\nOperating income decreased 46.6% to $17.8 from $33.3 million;\n\n\nOperating margin was 12.3% compared to 18.7%;\n\n\nThe effective income tax rate was 29.0% compared to 27.4%;\n\n\nNet income attributable to Inter Parfums, Inc. declined 46.8% to $10.1 million from $18.9 million; and,\n\n\nNet income attributable to Inter Parfums, Inc. per diluted share declined 46.7% to $0.32 from $0.60.\n\n\n\nJean Madar, Chairman & CEO of Inter Parfums, Inc. noted, “As we reported last month, two of our largest brands performed exceptionally well in the first quarter. The launch of Coach Dreams early in the year factored prominently in the 35.9% increase in Coach brand sales. GUESS brand sales rose 28.9% on the strength of existing scents and brand extensions launched in 2019. Comparable quarter sales declined for our other major brands following the closure of virtually all points of sale throughout the world by the middle of March due to the global COVID-19 pandemic. Also, as we pointed out last month, our first and second largest brands, Montblanc and Jimmy Choo, recorded increases of 9.9% and 25.8%, respectively for the 2019 first quarter, setting a high bar for 2020.”\n\n\nCOVID-19 Update and Plan of Action\nMr. Madar went on to say, “During most of the 2020 first quarter, the COVID-19 global pandemic triggered a never seen before interruption in our operations as various national, state, and local governments where we, our suppliers, and our customers operate, issued decrees closing certain businesses and prohibited certain...

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