Inter Parfums Inc. has joined with beauty companies that have withdrawn financial guidance as the coronavirus pandemic continues to spread.
The business put out a statement on Monday saying the company was in a "fundamentally strong" position, but that uncertainties surrounding COVID-19 caused it to withdraw full-year guidance for 2020. "As we gain greater visibility, we will revisit the subject of guidance," Inter Parfums chief executive officer Jean Madar said.
Inter Parfums went into 2020 with $253 million in cash, and $10.7 million in long-term debt. "Nonetheless, we will tighten our belts when appropriate, with an eye toward minimizing fixed expenses and protecting cash flow," Madar said.
"Operationally, we are preparing for increased demand in the post COVID-19 environment, with business in Asia already showing signs of a comeback. Of note, we have seen a resumption of more normalized sales levels in South Korea and China, with Internet sales especially strong. We are gearing up to be prepared to rapidly fill the distribution channels once the crisis is behind us. In that regard, we have maintained reasonable inventory levels of components and finished goods, and are gaining local market intelligence from our distributors and production capacity data from our suppliers," Madar continued.
Inter Parfums guidance withdrawal follows changes from Coty Inc. and the Estée Lauder Cos. Inc., which both expected sales to be hit significantly by COVID-19.
For more from WWD.com, see: 
Estée Lauder Withdraws Guidance, as Coronavirus ‘More Broadly’ Impacts Business
Coronavirus Impact: Coty Expects 20% Decline in Next Quarter
European Beauty Markets Brace for COVID-19 Impact
Source: Read Full Article