Inter Parfums Inc has withdrawn its 2020 full year guidance due to the uncertainties surrounding the spread of COVID-19.
Inter Parfums Inc chairman and ceo Jean Madar said the company will revisit its guidance once it has gained greater visibility.
Madar said that the company is well prepared financially and operationally to withstand the business downturn and return to normalized operations once the virus has been contained.
He continued: “Our conservative financial tradition has enabled us to amass hefty cash balances and nominal long-term debt. We entered 2020 with $253m in cash, cash equivalents and short-term investments, and only $10.7m of long-term debt. Nonetheless, we will tighten our belts when appropriate, with an eye toward minimizing fixed expenses and protecting cash flow. However, our quarterly dividend of $0.33 will be paid on time on April 15, 2020.”
Madar added that the company is preparing for increased demand post-outbreak, with business in Asia already resuming. For example, the company has seen a resumption of normalized sales levels in South Korea and China, with internet sales particularly strong.
He stated that Inter Parfums Inc is preparing to fill the distribution channels once the crisis is over, and that it has maintained reasonable inventory levels of components and finished goods.