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Inter Parfums (IPAR) Q3 Earnings Beat Estimates, Sales Down
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Inter Parfums, Inc. (IPAR - Free Report) delivered third-quarter 2020 results, with the top and the bottom line declining year over year. Further, sales were in line with the Zacks Consensus Estimate, while earnings beat the same.
The company believes that business momentum has improved compared with preceding quarter’s levels. Moreover, management is impressed with its productivity in 2020 amid the coronavirus outbreak. In this regard, the company introduced MCM and Moncler brands in its portfolio. Also, it made an equity investment in Divabox, the parent company of Origines-parfums.
Apart from these, Inter Parfums launched limited number of new products and brand extensions like L’Homme Rochas, Oscar de la Renta’s Bella Essence, Coach Dreams and Abercrombie & Fitch Authentic Night in 2020.
Inter Parfums, Inc. Price, Consensus and EPS Surprise
Inter Parfums posted net income per share of 52 cents, which surpassed the Zacks Consensus Estimate of 41 cents. However, the metric declined 21.2% from 66 cents per share reported in the year-ago quarter.
Net sales amounted to $160.6 million, down 16% (down 18.3% at constant currency) from $191.2 million reported in the year-ago quarter. The metric was in line with the Zacks Consensus Estimate of $160.6 million. The company’s Europe-based operations registered net sales of $129.7 million, down 9.6% year over year. In U.S.-based operations, net sales slumped 35.1% to $30.9 million.
In a recent press release, the company stated that third-quarter sales in Europe-based operations declined at a significantly lower pace compared with 68.6% year over year slump in the second quarter. Sales in general benefitted from favorable rebound in various markets including Asia and North America. Also, Coach and Lanvin fragrance sales increased 7.9% and 1.8%, respectively. Notably, Coach brand’s sales were driven by benefits stemming from the debut of Coach Dreams at the start of 2020. Further, Lanvin brand saw robust growth in key markets including Asia and Eastern Europe. Montblanc and Jimmy Choo brand sales fell 11.3% and 31.0%, respectively.
Talking about U.S.-based operations, the company saw significant improvement sequentially in the third quarter. However, absence of new product launches during 2020 put pressure on sales during the third quarter. Notably, the launch of Guess?’s (GES - Free Report) Bella Vita and Anna Sui Sky have been postponed. Nevertheless, management is optimistic about its product pipeline for 2021 that includes debut of products for the Kate Spade and MCM brands.
In the press release, management also stated that it saw strong business momentum and better-than-expected rebound. The upside is caused by reopening of stores as pandemic-led restrictions were relaxed as well as solid e-commerce business of its retail customers.
Further, gross margin was 60.5%, up from 59.8% posted in the year-ago quarter.
SG&A expenses amounted to $65.8 million, down from $77.8 million reported in the year-ago quarter. The upside can be attributed to cost-control measures amid the COVID-19 outbreak. As a percentage of net sales, SG&A expenses were 41%. The metric increased from 40.7% in the prior-year quarter.
Operating income came in at $31.4 million, down 14.4% from operating income of $36.6 million reported in the year-ago quarter. Further, operating margin was 19.5%, up from prior quarter’s figure of 19.2%.
Other Financial Aspects
The company ended the quarter with cash and cash equivalents of $133.4 million, long-term debt (excluding current portion) of $19.4 million and shareholder’s equity of $499.5 million.
Guidance
The company reiterated its 2020 guidance, which was raised last month. For 2020, management expects net sales in the range of $495-$500 million. Notably, the Zacks Consensus Estimate for 2020 sales is pegged at $504.28 million.
Further, it envisions net income per share in the band of 80-84 cents. Notably, the consensus mark for 2020 earnings is pegged at 85 cents per share.
Price Performance
This Zacks Rank #2 (Buy) stock has increased 19.2% in the past three months compared with the industry’s growth of 13%.
United Natural Foods (UNFI - Free Report) , with a Zacks Rank #1, has a trailing four-quarter earnings surprise of 4.8%, on average.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Inter Parfums (IPAR) Q3 Earnings Beat Estimates, Sales Down
Inter Parfums, Inc. (IPAR - Free Report) delivered third-quarter 2020 results, with the top and the bottom line declining year over year. Further, sales were in line with the Zacks Consensus Estimate, while earnings beat the same.
The company believes that business momentum has improved compared with preceding quarter’s levels. Moreover, management is impressed with its productivity in 2020 amid the coronavirus outbreak. In this regard, the company introduced MCM and Moncler brands in its portfolio. Also, it made an equity investment in Divabox, the parent company of Origines-parfums.
Apart from these, Inter Parfums launched limited number of new products and brand extensions like L’Homme Rochas, Oscar de la Renta’s Bella Essence, Coach Dreams and Abercrombie & Fitch Authentic Night in 2020.
Inter Parfums, Inc. Price, Consensus and EPS Surprise
Inter Parfums, Inc. price-consensus-eps-surprise-chart | Inter Parfums, Inc. Quote
Quarter in Detail
Inter Parfums posted net income per share of 52 cents, which surpassed the Zacks Consensus Estimate of 41 cents. However, the metric declined 21.2% from 66 cents per share reported in the year-ago quarter.
Net sales amounted to $160.6 million, down 16% (down 18.3% at constant currency) from $191.2 million reported in the year-ago quarter. The metric was in line with the Zacks Consensus Estimate of $160.6 million. The company’s Europe-based operations registered net sales of $129.7 million, down 9.6% year over year. In U.S.-based operations, net sales slumped 35.1% to $30.9 million.
In a recent press release, the company stated that third-quarter sales in Europe-based operations declined at a significantly lower pace compared with 68.6% year over year slump in the second quarter. Sales in general benefitted from favorable rebound in various markets including Asia and North America. Also, Coach and Lanvin fragrance sales increased 7.9% and 1.8%, respectively. Notably, Coach brand’s sales were driven by benefits stemming from the debut of Coach Dreams at the start of 2020. Further, Lanvin brand saw robust growth in key markets including Asia and Eastern Europe. Montblanc and Jimmy Choo brand sales fell 11.3% and 31.0%, respectively.
Talking about U.S.-based operations, the company saw significant improvement sequentially in the third quarter. However, absence of new product launches during 2020 put pressure on sales during the third quarter. Notably, the launch of Guess?’s (GES - Free Report) Bella Vita and Anna Sui Sky have been postponed. Nevertheless, management is optimistic about its product pipeline for 2021 that includes debut of products for the Kate Spade and MCM brands.
In the press release, management also stated that it saw strong business momentum and better-than-expected rebound. The upside is caused by reopening of stores as pandemic-led restrictions were relaxed as well as solid e-commerce business of its retail customers.
Further, gross margin was 60.5%, up from 59.8% posted in the year-ago quarter.
SG&A expenses amounted to $65.8 million, down from $77.8 million reported in the year-ago quarter. The upside can be attributed to cost-control measures amid the COVID-19 outbreak. As a percentage of net sales, SG&A expenses were 41%. The metric increased from 40.7% in the prior-year quarter.
Operating income came in at $31.4 million, down 14.4% from operating income of $36.6 million reported in the year-ago quarter. Further, operating margin was 19.5%, up from prior quarter’s figure of 19.2%.
Other Financial Aspects
The company ended the quarter with cash and cash equivalents of $133.4 million, long-term debt (excluding current portion) of $19.4 million and shareholder’s equity of $499.5 million.
Guidance
The company reiterated its 2020 guidance, which was raised last month. For 2020, management expects net sales in the range of $495-$500 million. Notably, the Zacks Consensus Estimate for 2020 sales is pegged at $504.28 million.
Further, it envisions net income per share in the band of 80-84 cents. Notably, the consensus mark for 2020 earnings is pegged at 85 cents per share.
Price Performance
This Zacks Rank #2 (Buy) stock has increased 19.2% in the past three months compared with the industry’s growth of 13%.
Top 2 Consumer Staple Picks
Nu Skin (NUS - Free Report) , which currently sports a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 6.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
United Natural Foods (UNFI - Free Report) , with a Zacks Rank #1, has a trailing four-quarter earnings surprise of 4.8%, on average.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>