Fragrance maker Inter Parfums Inc signed a worldwide license agreement with Karl Lagerfeld to create and distribute perfumes under the German fashion designer's namesake brand.

The 20-year agreement with Lagerfeld, who ended a deal with fragrance and cosmetics company Coty BV on Wednesday, points to Inter Parfums's attempts to strengthen its portfolio as its 19-year long partnership with British luxury goods group Burberry Group comes to an end.

Burberry Group, which makes up more than half of Inter Parfums' revenue, ended its licensing agreement with Inter Parfums in July, but extended the agreement for three months while it takes distribution inhouse.

Inter Parfums, which also sells brands such as Lanvin, Jimmy Choo, Van Cleef & Arpels, said earlier this week that sales in its European business fell.

Karl Lagerfeld, known for his stint as head designer and creative director for luxury company Chanel, runs his own fashion label and is the artistic director for Italian brand Fendi.

Inter Parfums said a new fragrance line is scheduled to be launched in 2014, said in a statement.

Shares of the New York-based company were up about 1 percent at $18.32 on Nasdaq on Thursday.