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Inter Parfums (IPAR) Benefits From Alliances & Product Launches
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Focus on strategic partnerships and effective product launches are working well for Inter Parfums, Inc. (IPAR - Free Report) . The company has been benefiting from solid growth across European as well as the U.S. operations. However, higher SG&A expenses are a challenge for Inter Parfums.
Let’s delve deeper.
Strategic Partnership & Product Launches
Inter Parfums has been benefiting from focus on product launches to boost assortment strength. The company is on track to rollout products that were revealed in the first half of the year. The launches include Alibi for Oscar de la Renta, Bella Vita for GUESS, I Want Choo for Jimmy Choo, Coach Sunset Dreams, the Kate Spade signature scent and Rochas Girl among others. For the rest of the year, the company’s new product pipeline is dominated by brand extensions like the Oscar de la Renta Bella family, flankers for Jimmy Choo Urban Hero and the Hollister Wave collection. Recently, the company debuted Effect— a full suite of men’s grooming and fragrance products — under the GUESS brand.
Image Source: Zacks Investment Research
Inter Parfums, which shares space with Coty Inc. (COTY - Free Report) , is set to expand its business through new licenses and acquisitions. In July 2021, the company inked a deal with Salvatore Ferragamo S.p.A. The deal grants an exclusive worldwide license to Inter Parfums for the production and distribution of Ferragamo’s branded perfumes. In July 2020, 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 will enhance Inter Parfums’ fragrance line and product range as well as ramp up its digital development, courtesy of Origines-parfums’ solid customer expertise.
Prior to this, Interparfums SA signed an agreement with renowned luxury brand — MonclerSpA — in June 2020. The deal gave Inter Parfums rights to fragrance-related items in Monclermono brand stores along with few other specialty shops, department stores and duty-free shops.
Solid Q2 Performance
During second-quarter 2021, the company’s Europe-based product sales increased 28.3% to $161.2 million, whereas U.S.-based product sales ascended 14.2% to $46.4 million from second-quarter 2019 levels. 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 initial sales of the Kate Spade signature collection, which marked its debut in the first quarter. In U.S. operations, the bump 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.
Wrapping Up
Inter Parfumshas been grappling with higher SG&A expenses for a while. During the second quarter, SG&A expenses amounted to $87.7 million, up from $32.4 million reported in the year-ago quarter. In its last earnings call, management highlighted that it was witnessing higher transportation costs.
That being said, we believe that the abovementioned upsides are likely to keep this Zacks Rank #3 (Hold) company’s growth story going. The company’s shares have surged 67.1% in the past year compared with the industry’s 42.7% growth.
Nu Skin Enterprises, Inc. (NUS - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 15.7%, on average.
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Inter Parfums (IPAR) Benefits From Alliances & Product Launches
Focus on strategic partnerships and effective product launches are working well for Inter Parfums, Inc. (IPAR - Free Report) . The company has been benefiting from solid growth across European as well as the U.S. operations. However, higher SG&A expenses are a challenge for Inter Parfums.
Let’s delve deeper.
Strategic Partnership & Product Launches
Inter Parfums has been benefiting from focus on product launches to boost assortment strength. The company is on track to rollout products that were revealed in the first half of the year. The launches include Alibi for Oscar de la Renta, Bella Vita for GUESS, I Want Choo for Jimmy Choo, Coach Sunset Dreams, the Kate Spade signature scent and Rochas Girl among others. For the rest of the year, the company’s new product pipeline is dominated by brand extensions like the Oscar de la Renta Bella family, flankers for Jimmy Choo Urban Hero and the Hollister Wave collection. Recently, the company debuted Effect— a full suite of men’s grooming and fragrance products — under the GUESS brand.
Image Source: Zacks Investment Research
Inter Parfums, which shares space with Coty Inc. (COTY - Free Report) , is set to expand its business through new licenses and acquisitions. In July 2021, the company inked a deal with Salvatore Ferragamo S.p.A. The deal grants an exclusive worldwide license to Inter Parfums for the production and distribution of Ferragamo’s branded perfumes. In July 2020, 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 will enhance Inter Parfums’ fragrance line and product range as well as ramp up its digital development, courtesy of Origines-parfums’ solid customer expertise.
Prior to this, Interparfums SA signed an agreement with renowned luxury brand — MonclerSpA — in June 2020. The deal gave Inter Parfums rights to fragrance-related items in Monclermono brand stores along with few other specialty shops, department stores and duty-free shops.
Solid Q2 Performance
During second-quarter 2021, the company’s Europe-based product sales increased 28.3% to $161.2 million, whereas U.S.-based product sales ascended 14.2% to $46.4 million from second-quarter 2019 levels. 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 initial sales of the Kate Spade signature collection, which marked its debut in the first quarter. In U.S. operations, the bump 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.
Wrapping Up
Inter Parfumshas been grappling with higher SG&A expenses for a while. During the second quarter, SG&A expenses amounted to $87.7 million, up from $32.4 million reported in the year-ago quarter. In its last earnings call, management highlighted that it was witnessing higher transportation costs.
That being said, we believe that the abovementioned upsides are likely to keep this Zacks Rank #3 (Hold) company’s growth story going. The company’s shares have surged 67.1% in the past year compared with the industry’s 42.7% growth.
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Helen of Troy Limited (HELE - Free Report) , currently carrying a Zacks Rank #2 (Buy), has a trailing four-quarter earnings surprise of 28.2%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nu Skin Enterprises, Inc. (NUS - Free Report) , currently carrying a Zacks Rank #2, has a trailing four-quarter earnings surprise of 15.7%, on average.