Inter Parfums Slips To Loss In Q4; Backs 2014 Outlook

(RTTNews) - Cosmetics company Inter Parfums Inc. (IPAR) on Tuesday reported a loss for the fourth quarter reflecting lower sales, while the prior-year quarter's results included a gain on termination of the Burberry license. Looking ahead, the company maintained its outlook for fiscal 2014, but below analysts' estimates.

New York-based Inter Parfums' net loss for the fourth quarter was $4.15 million or $0.13 per share, compared to net income of $99.61 million or $3.24 per share in the same period last year. The prior-year quarter's results include a gain on termination of the Burberry license of $198.84 million.

Excluding the after-tax net gain, adjusted net income in the year-ago period was $6.6 million or $0.21 per share. On average, six analysts polled by Thomson Reuters expected the company to report loss of $0.17 per share for the latest quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter declined 40 percent to $105.53 million from $176.93 million last year. Analysts had a consensus revenue estimate of $105.50 million.

However, net sales of ongoing brands, excluding Burberry brand sales, increased 19 percent from the prior-year quarter to $105.5 million.

The company's European-based operations generated a 22 percent increase in sales of ongoing brands to $78.4 million, while sales by U.S.-based operations rose 11 percent to $27.1 million.

Gross margin declined to 57.3 percent from 63.0 percent in the year-ago period, reflecting the absence of Burberry product sales.

Looking ahead to fiscal 2014, Inter Parfums maintained its outlook for net sales of about $495 million for a nearly 15 percent year-over-year sales improvement by its ongoing brands, resulting in net income attributable to the company in a range of $0.93 to $0.98 per share. Analysts currently expect earnings of $1.08 per share for the year on revenues of $515.23 million.

Jean Madar, Chairman & CEO of Inter Parfums, said, "We are extremely enthusiastic about the outlook for our business. Sales from ongoing brands are generating excellent growth; we have recently added several important high potential brands to our portfolio; our balance sheet remains very strong; we have a global distribution network reaching over 100 countries; and our new product pipeline for 2014 is one of the most ambitious in recent years."

The company said its regular quarterly cash dividend of $0.12 per share will be paid on April 15, 2014 to shareholders of record on March 31, 2014.

IPAR closed Tuesday's trading at $33.97, down $0.10 or 0.29 percent on a volume of 102,296 shares.