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Inter Parfums (IPAR) Teams Up With G-III Apparel to Boost Growth

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Inter Parfums, Inc. (IPAR - Free Report) is focused on driving growth through exploring potential license deals with different brands. Moving on these lines, the company entered into a long-term global licensing agreement with G-III Apparel Group, Ltd. (GIII - Free Report) — to create, develop as well as distribute fragrances and related items under well-known brands like DKNY and Donna Karan.

Management highlighted that the addition of such renowned brands is likely to boost portfolio strength. Through the deal, the company will gain access to robust fragrance franchises like DKNY Be Delicious and Donna Karan Cashmere Mist. The deal will also help Inter Parfums to grow its consumer base globally. The license is likely to come into effect on Jul 1, 2022 for Inter Parfums. Further, management expects to roll out new fragrances under DKNY and Donna Karan brands during 2023.

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Strategic Partnership Holds Key to Growth

Inter Parfums has been benefiting from strategic partnerships 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. Management believes 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. The well-known luxury brand coupled with Inter Parfums’ creativity, competence and commercial expertise is likely to bolster growth across the fragrance business.

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.

The aforementioned deal with G-III Apparel is likely to accelerate Inter Parfums’ business. Shares of the Zacks Rank #3 (Hold) company have gained 4.1% in the past three months against the industry’s decline of 6.8%.

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