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Inter Parfums (IPAR) Raises 2021 View Again on Solid Q2 Sales
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Inter Parfums, Inc. (IPAR - Free Report) seems to be in a robust shape, as it raised its 2021 guidance yet another time, on reporting splendid sales numbers for the second quarter of 2021. Prior to this, management had pulled up its view for the full year when it came out with first-quarter sales numbers. Certainly, Inter Parfums’ brand strength, which is largely backed by product launches and strategic alliances, has been yielding results.
Second-quarter 2021 sales surged considerably from the year-ago period, while it also advanced 24.9% from the second quarter of 2019, which serves as a better base for comparison since second-quarter 2020 was majorly affected by the pandemic-led barriers. Courtesy of a spectacular first-half show and better anticipations for the second half of 2021, management now projects net sales of nearly $750 million for full-year 2021.
Earnings per share for the same period are envisioned to be $1.95. Management earlier anticipated 2021 net sales to be nearly $700 million, while net income per share was expected to be $1.65.
The company’s guidance is based on the assumption of no major resurgence in coronavirus cases and the current level of the average dollar/euro exchange rate. It also excludes sales related to the pending deal with Salvatore Ferragamo S.p.A, which is anticipated to conclude in October. Inter Parfums inked a worldwide fragrance license deal with Salvatore Ferragamo earlier this month.
Salvatore Ferragamo is the parent company of the Salvatore Ferragamo Group, which is among the world's leading luxury companies. All said, let’s take a look at the second-quarter sales numbers.
Image Source: Zacks Investment Research
Q2 Numbers (Comparison with Second-Quarter 2019)
Net sales of $207.6 million grew 22.7% on a constant-currency or cc basis. Europe-based product sales increased 28.3% to $161.2 million, whereas U.S.-based product sales ascended 14.2% to $46.4 million.
In European operations, Montblanc, Jimmy Choo and Coach brands registered sales growth of 27.3%, 64.9% and 22.4%, respectively. Apart from these, sales growth was backed by the initial sales of the Kate Spade signature collection, which marked its debut in the first quarter.
In the U.S. operations, the jump in sales was majorly driven by the GUESS brand, which gained on continued legacy fragrance sales along with the new Bella Vita line. Contributions from the Abercrombie & Fitch brand and the launch of Oscar de la Renta’s Alibi also fueled sales growth.
Management also remains encouraged about the recent launch of MCM fragrance. It is particularly impressed with the better-than-expected initial sales, dell-through as well as pending orders. Up until now, the distribution has been concentrated in some parts of continental Europe, the United States and South Korea.
Further rollout is on track, with China’s Sephora stores having launched the product this month, and the U.K. likely to start selling next month. That said, Inter Parfums is optimistic about the MCM brand’s solid innovation plan to make the most of its potential.
We believe that Inter Parfums’ constant innovation and gains from strategic deals are likely to keep its growth story going. The Zacks Rank #2 (Buy) company’s shares have rallied 53.4% in the past year compared with the industry’s growth of 58.9%.
Medifast (MED - Free Report) has a Zacks Rank #2 and its bottom line outpaced the Zacks Consensus Estimate by 12.7% in the trailing four quarters, on average.
The J.M. Smucker (SJM - Free Report) has a Zacks Rank #2 and its bottom line outpaced the Zacks Consensus Estimate by 17.7% in the trailing four quarters, on average.
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Inter Parfums (IPAR) Raises 2021 View Again on Solid Q2 Sales
Inter Parfums, Inc. (IPAR - Free Report) seems to be in a robust shape, as it raised its 2021 guidance yet another time, on reporting splendid sales numbers for the second quarter of 2021. Prior to this, management had pulled up its view for the full year when it came out with first-quarter sales numbers. Certainly, Inter Parfums’ brand strength, which is largely backed by product launches and strategic alliances, has been yielding results.
Second-quarter 2021 sales surged considerably from the year-ago period, while it also advanced 24.9% from the second quarter of 2019, which serves as a better base for comparison since second-quarter 2020 was majorly affected by the pandemic-led barriers. Courtesy of a spectacular first-half show and better anticipations for the second half of 2021, management now projects net sales of nearly $750 million for full-year 2021.
Earnings per share for the same period are envisioned to be $1.95. Management earlier anticipated 2021 net sales to be nearly $700 million, while net income per share was expected to be $1.65.
The company’s guidance is based on the assumption of no major resurgence in coronavirus cases and the current level of the average dollar/euro exchange rate. It also excludes sales related to the pending deal with Salvatore Ferragamo S.p.A, which is anticipated to conclude in October. Inter Parfums inked a worldwide fragrance license deal with Salvatore Ferragamo earlier this month.
Salvatore Ferragamo is the parent company of the Salvatore Ferragamo Group, which is among the world's leading luxury companies. All said, let’s take a look at the second-quarter sales numbers.
Image Source: Zacks Investment Research
Q2 Numbers (Comparison with Second-Quarter 2019)
Net sales of $207.6 million grew 22.7% on a constant-currency or cc basis. Europe-based product sales increased 28.3% to $161.2 million, whereas U.S.-based product sales ascended 14.2% to $46.4 million.
In European operations, Montblanc, Jimmy Choo and Coach brands registered sales growth of 27.3%, 64.9% and 22.4%, respectively. Apart from these, sales growth was backed by the initial sales of the Kate Spade signature collection, which marked its debut in the first quarter.
In the U.S. operations, the jump in sales was majorly driven by the GUESS brand, which gained on continued legacy fragrance sales along with the new Bella Vita line. Contributions from the Abercrombie & Fitch brand and the launch of Oscar de la Renta’s Alibi also fueled sales growth.
Management also remains encouraged about the recent launch of MCM fragrance. It is particularly impressed with the better-than-expected initial sales, dell-through as well as pending orders. Up until now, the distribution has been concentrated in some parts of continental Europe, the United States and South Korea.
Further rollout is on track, with China’s Sephora stores having launched the product this month, and the U.K. likely to start selling next month. That said, Inter Parfums is optimistic about the MCM brand’s solid innovation plan to make the most of its potential.
We believe that Inter Parfums’ constant innovation and gains from strategic deals are likely to keep its growth story going. The Zacks Rank #2 (Buy) company’s shares have rallied 53.4% in the past year compared with the industry’s growth of 58.9%.
3 More Solid Consumer Staple Stocks
Darling Ingredients (DAR - Free Report) , which currently carries a Zacks Rank #1 (Strong Buy), has a trailing four-quarter earnings surprise of 29.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Medifast (MED - Free Report) has a Zacks Rank #2 and its bottom line outpaced the Zacks Consensus Estimate by 12.7% in the trailing four quarters, on average.
The J.M. Smucker (SJM - Free Report) has a Zacks Rank #2 and its bottom line outpaced the Zacks Consensus Estimate by 17.7% in the trailing four quarters, on average.