Inter Parfums, Inc. (NASDAQ:IPAR) Q4 2023 Earnings Conference Call February 28, 2024 11:00 AM ET
Company Participants
Karin Daly - IR
Jean Madar - Chairman and CEO
Michel Atwood - CFO
Conference Call Participants
Linda Bolton-Weiser - D.A. Davidson
Korinne Wolfmeyer - Piper Sandler
Sydney Wagner - Jefferies
Hamed Khorsand - BWS Financial
Operator
Greetings, and welcome to the Inter Parfums, Inc. 2023 Fourth Quarter and Full Year Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded.
At this time, I would like to turn the call over to Karin Daly, Vice President at the Equity Group and Inter Parfums's Investor Relations Representative. Thank you. Please go ahead.
Karin Daly
Thank you, Diego. Joining us on the call today will be Chairman and Chief Executive Officer, Jean Madar; and Chief Financial Officer, Michel Atwood.
On behalf of the Company, I would like to note that this conference call may contain forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from projected results. These factors may be found in the Company's filings with the Securities and Exchange Commission under the headings Forward-Looking Statements and Risk Factors in their most recent annual report on Form 10-K. Forward-looking statements speak only as of the date on which they are made and Inter Parfums undertakes no obligation to update the information discussed.
As a reminder, the Company's consolidated results reflect its two business segments, European-based operations and United States-based operations. Certain prestige fragrance products are produced and marketed by their European-based operations through its 72% owned French subsidiary Inter Parfums, S.A. When the Company refers to their U.S.-based operations, they are talking about their wholly-owned subsidiary.
It is now my pleasure to turn the call over to Mr. Jean Madar. Jean, you may begin.
Jean Madar
Thank you, Karin. Good morning, everyone, and thank you for participating in today's call.
We are seeing ongoing momentum in the fragrance market, particularly within the prestige and premium categories in which we play. Much of the growth we have seen can be attributed to premiumization as consumers are increasingly seeking high-quality and higher-concentration fragrances in today's market.
The ongoing demand in our prestige portfolio of brands led to a record net sales of $1.3 billion in 2023, an increase of 21% compared to 2022. At comparable foreign currency exchange rate, net sales increased 20% in 2023, of which 5% was related to new brands. Similar to 2022, our successful growth during the year was attributable to our established brands and our new product pipeline dominated by extensions.