Interparfums cautious on 2020 growth due to economic uncertainty

(Reuters) - French perfume maker Interparfums IPAR.PA on Thursday forecast 2020 revenue at a lower-than-expected 500 million euros (428.40 million pounds) blaming geopolitical and economic uncertainties.

That was below the 545.6 million euros expected on average by analysts in a company-compiled consensus.

“We plan to continue to invest significantly in marketing and advertising, without impacting our operating margin which in 2020 is expected to reach between 14% and 14.5%,” Chief Financial Officer Philippe Santi said in a statement.

Its 2019 operating margin may exceed its initial guidance of 14%, he said.

The group, which develops perfume as well as cosmetic lines, confirmed it expected its sales for this year to reach its target, driven by strong performances in its fragrances Montblanc, Jimmy Choo and Coach.

Interparfums said that 2019 saw a number of significant launches, most notably the Montblanc Explorer line, which is expected to reach sales of more than 40 million euros this year.

Nonetheless, the group’s chairman and CEO said geopolitical and economic uncertainties prompts the company to remain cautious regarding forecasts for 2020.

Reporting by Charles Regnier in Gdansk; editing by Kim Coghill and Jason Neely