Coach fragrance. Shutterstock.
French perfume maker Interparfums on Tuesday raised its 2020 operating margin guidance on the back of strong full-year sales, boosted by a strong second half, particularly in the United States.
The group, which develops fragrances from creation to distribution for more than 10 luxury brands including Montblanc, Coach and Jimmy Choo, now expects its operating margin to exceed 11 percent, after it had seen it reaching around 7 percent to 8 percent.
“Our responsiveness and the effectiveness of the measures we adopted in the spring resulted in sales in the second half much better than expected, bolstered by renewed momentum in the worldwide perfume and cosmetics market starting in July,” chief executive Philippe Benacin said.
Interparfums reported full-year sales of €367.4 million ($445.6 million). Analysts in a company-provided poll had expected sales of €343.1 million and an 8.7 percent operating margin.
In December, it raised its revenue guidance to exceed €340 million, helped by a business rebound through the autumn.
In North America, where Interparfums generates over a third of its annual revenue, it achieved fourth-quarter growth of 16 percent.
Visibility for the months ahead remains limited, Benacin said, as the recent news flow from France and other markets, facing an increasing possibility of new Covid-19 lockdowns, continue to be a source of concern.
By Juliette Portala; editors: Tom Hogue and Jason Neely.