— Valentino perfumes are still selling out, but the perfume is selling well enough to continue to make big money.
The company said Tuesday it has sold a record amount of its fragrance oils for the fourth consecutive year, including a record 3 million samples.
Valentino said Tuesday the average sale price for the perfume oils has reached $3.5 million per bottle, up from $1.5m in 2015.
The perfume industry is expected to hit $10 billion in 2017.
Sales of Valentino’s perfume rose 18 percent to $6.5 billion in the third quarter, the company said.
That is up from a year earlier, but far below the $12 billion annual total for perfume.
The price is up 5 percent from a decade ago.
“The current year’s price increase is due primarily to the introduction of new products, which were not available at the time of our previous report in 2017,” Valentino CEO Stefano Gennaro said in a statement.
Gennari said the rise in sales of Valentinos products reflects the company’s expansion into new markets.
“We have been in the perfume industry for nearly 40 years and are proud of the quality of the products we have produced and the attention we pay to quality,” Gennaria said.
“This is also a reflection of the strong demand for our products in the beauty industry, and our ability to provide an experience of great quality that is affordable for everyone.”
Valentino has grown its portfolio of premium fragrances over the past several years, but has struggled to sustain a profit margin.
The $3 billion in sales this year will leave the company with $7.4 billion in debt, according to the company.
The debt, and the increased debt-to-equity ratio, is hurting the company, Gennario said.
The share price of Valentines stock fell nearly 2 percent in after-hours trading.
“Valentino is a company with strong fundamentals and it is our goal to achieve profitability and profitability sustain,” Valentinos CEO, Stefano Amato, said in an interview.
“That is the priority of the company.”