Interparfums — Earnings Release 2014

Jan 27, 2015

interparfums

2014 sales: €297 million +19% like-for-like

With €75 million in consolidated sales, up 30% at current exchange rates and 26.5% at constant exchange rates, performances in the fourth quarter exceeded expectations, bolstered by continuing momentum of top-selling brands, Jimmy Choo, Lanvin and Montblanc. For the 2014 full year, sales reached €297 million, up 19% like-for-like at current exchange rates from 2013.

2014 brand highlights

€m			$Q_4$	FY	Change
	2013	2014	2013	2014	14/13
Montblanc	14.9	18.5	62.7	83.4	$+33%$
Lanvin	14.9	20.1	64.9	68.0	$+5%$
Jimmy Choo	10.5	17.1	54.6	59.1	$+8%$
Karl Lagerfeld		2.8		18.2
Van Cleef & Arpels	5.0	4.9	19.2	17.7	$-7%$
Boucheron	5.1	3.2	17.4	14.0	$-20%$
S.T. Dupont	1.7	3.1	10.1	12.8	$+27%$
Repetto	2.7	2.5	9.0	9.3	$+3%$
Paul Smith	1.3	1.8	9.0	9.0
Balmain	0.5	0.9	2.5	5.1	ns
Other	1.1	0.1	0.3	0.4	ns
Recurring sales	57.7	75.0	249.7	297.0	$+19%$
Other $(*)$			100.7		ns
Total sales	57.7	75.0	350.4	297.0	ns

(*): Burberry + Nickel - ns: not significant

. With the continuing success of the Legend line, which has built strong name recognition over the last three years, and the spring launch of the Emblem line, Montblanc fragrances achieved further growth of more than 30%; on that basis, sales reached €83 million in 2014, a fourfold increase in four years;

■ Lanvin fragrances had sales of €68 million; a sustained year-end performance for the Eclat d'Arpège line offset a downturn at the year's start in the Russian market and the high comparison base from the Lanvin Me launch in 2013:

■ Jimmy Choo fragrances had nearly €60 million in sales, gaining more than 8% in 2014, with the highly successful launch of the Jimmy Choo Man line (€12 million in six months) counterbalancing the decline by the Flash line launched in 2013;

• With initial shipments to distributors in mid-March of the first fragrance duo, Karl Lagerfeld fragrances had sales in line with the budget of more than €18 million;

Philippe Benacin, Chairman and Chief Executive Officer commented: « Lanvin and Jimmy Choo fragrances performed well in the 2014 second half with gains of more than 20% from the same period in 2013. Several initiatives lined up for each of these brands combined with launches for the Boucheron and Balmain brands and the continuing development of Montblanc fragrances will bolster this trend in the months ahead. On that basis and with the Euro/US dollar exchange rate at current levels, we have raised our annual sales guidance for 2015 to €310-€320 million. »

In a year without major launches, Van Cleef & Arpels fragrances had sales of nearly €18 million, contracting marginally, based on the First, Rêve and Collection Extraordinaire lines:

■ Boucheron fragrances had sales of €14 million in 2014, impacted by the decline of the Boucheron Place Vendôme line, launched in 2013;

. Finally, Repetto fragrances were successful in consolidating their gradual expansion, with an excellent performance in France, driven by the Eau de Parfum launch, one year after the Eau de Toilette.

2014 highlights by region

€m	$Q_4$			FY	Change
	2013	2014	2013	2014	14/13
Africa	0.8	1.9	4.3	5.3	$+23%$
North America	12.9	14.9	51.4	60.7	$+18%$
South America	4.1	6.4	20.1	30.0	+50%
Asia	7.2	10.9	38.6	46.6	$+21%$
Eastern Europe	8.5	11.5	30.0	32.9	$+10%$
Western Europe	11.5	16.7	54.0	66.8	$+24%$
France	9.4	8.2	28.3	27.0	$-4%$
Middle East	3.3	4.5	23.0	27.7	$+21%$
Recurring sales	57.7	75.0	249.7	297.0	$+19%$
Other $(*)$		-	100.7		ns
Total sales	57.7	75.0	350.4	297.0	ns

(*): Burberry + Nickel - ns: not significant

South America registered growth of 50%, benefiting from robust gains by Montblanc and Jimmy Choo fraarance in this reaion:

. With fourth-quarter growth above 50% on gains by Lanvin and Montblanc fragrances in particular, full-year sales in Asia rose by more than 20%;

In Eastern Europe, after a difficult start for the period, solid performances by Lanvin fragrances, and in particular the Eclat d'Arpège line, fueled growth of more than 35% in the last auarter and 10% for the full year.

. With 24% growth in 2014, Western Europe profited from Karl Lagerfeld line launches and the ongoing development of Montblanc and Jimmy Choo fragrances.

Paris, January 27, 2015

Philippe Santi, Executive Vice President, added: « Last fall, taking advantage of favorable foreign exchange trends, we decided to strengthen marketing and advertising efforts. This strategy clearly contributed to accelerating year-end sales and will allow us to achieve an operating margin in line with the latest forecasts for 2014 of around 10.5%. In 2015, if the favorable level for Euro/US dollar exchange rates persists, then the company intends to again reinvest all or part of the additional profits to accelerate its development, while maintaining its objective for improving profitability. »

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