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Inter Parfums (IPAR)-Salvatore Ferragamo Deal to Fuel Growth

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Inter Parfums, Inc. (IPAR - Free Report) is focused on driving growth through exploring potential license deals with different brands. Focus on innovation and product launches has also been a major catalyst. Progressing along these lines, management has inked a deal with Salvatore Ferragamo S.p.A. Salvatore Ferragamo S.p.A. is the parent company of the Salvatore Ferragamo Group, which is among the world's leading luxury companies.

The latest deal grants an exclusive worldwide license to Inter Parfums for the production and distribution of Ferragamo’s branded perfumes. Effective this October, the license will be valid for a term of 10 years, including a five-year optional term, and is subject to certain conditions. Considering the management and coordination of activities with respect to this license agreement, Inter Parfums will operate via a wholly-owned Italian company in Florence.

We note that Salvatore Ferragamo is among the most iconic and recognized brands in the luxury sector. Management cited that the addition of the Ferragamo brand to the company’s portfolio is a significant opportunity to develop its business in the fashion and luxury world. Hence, this well-known luxury brand coupled with Inter Parfums’ creativity, competence and commercial expertise is likely to bolster growth across the fragrance business.

What’s More?

Inter Parfums has been gaining on its strategic partnerships with Origines-parfums and Moncler SpA. Markedly, Inter Parfums’ majorly owned subsidiary, Interparfums SA, acquired 25% of Divabox’s capital. Divabox is the owner of Origines-parfums, which is a renowned French company in the online beauty market. The deal focuses on enhancing Inter Parfums’ fragrance line and product range alongside pushing its digital development. Ins SA also signed an agreement with renowned luxury brand, Moncler SpA. This deal gave Iterparfumnter Parfums the rights to fragrance-related items in Moncler monobrand stores along with a few other specialty shops, department stores and duty-free shops.

Inter Parfums’ product launches of Jimmy Choo's I Want Choo, Kate Spade Signature scent and Rochas Girl are quite impressive. Product pipeline for the rest of the year includes brand extensions, such as flankers for Montblanc Explorer, Coach Dreams, Jimmy Choo Urban Hero, the Oscar de la Renta Bella family, the Hollister Wave collection, and the Anna Sui Fantasia pillar. Apart from these, the company has absolutely new fragrances planned for the coming quarters.

Shares of this perfumes and cosmetics maker have increased 25.2% in the past six months, outperforming the industry’s 14.6% growth. Inter Parfums, which shares space with Estee Lauder (EL - Free Report) and Coty (COTY - Free Report) , presently carries a Zacks Rank #3 (Hold).

A better-ranked stock in the cosmetics space is Nu Skin Enterprises (NUS - Free Report) , which delivered an average trailing four-quarter earnings surprise of 18.8% and has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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